What are Cost Sharing Reductions?

Cost-Sharing Reductions (CSRs) are discounts that lower the amount you must pay for deductibles, copayments, and coinsurance. Cost-sharing reductions are often referred to as “extra savings.”  

If you qualify, you must enroll in a plan in the Silver category to get the extra savings. You can use a premium tax credit for a plan in any metal category, but if you qualify for a cost-sharing reduction too, you’ll get those savings only if you pick a Silver plan. 

If you qualify for CSRs, you also have a lower out-of-pocket maximum — the total amount you’d have to pay for covered medical services per year. When you reach your out-of-pocket maximum, your insurance plan covers 100% of all covered services. 

If you're a member of a federally recognized tribe or an Alaska Native Claims Settlement Act (ANCSA) Corporation shareholder, you may qualify for additional cost-sharing reductions. Visit our Information for Native Americans page to learn more. 

Footnote: https://www.coverme.gov/learn/financial-help