Cost Sharing Reductions help lower the amount you pay out-of-pocket when using medical services or receiving health care. Common out-of-pocket costs include deductible, coinsurance, and copayment fees.
Like the Premium Tax Credit, which lowers the costs of your monthly insurance rate, Cost Sharing Reductions are an additional type of subsidy, or "discount", paid for by the government. Those who qualify for both subsidies find that they can substantially save on their total cost of health care.
To qualify for Cost Sharing Reductions, you must choose a Silver plan, and your income must be at or below 2.5x the Federal Poverty Line. You may qualify if your income falls within the following ranges:
United States residents living in the contiguous states (e.g. not living in Alaska or Hawaii):
Hawaii residents only:
Within these ranges, the lower your income, the more you can save on your out-of-pocket costs. That is because those with lower incomes qualify for greater Cost Sharing Reductions. If your income falls below these levels, you may be eligible for Medicaid depending on the state you live in. Check with the Federal Health Insurance Marketplace or your state’s exchange to learn more.