What is a cost sharing reduction (CSR)?

A cost sharing reduction (CSR) is a government allowance that helps to lower the cost of health care. This is available to residents of California who purchase health insurance through Covered California or through the Health Insurance Marketplace. The CSR helps to reduce the out of pocket costs for copays and deductibles for those who qualify. To qualify for a CSR, an individual must meet certain requirements. The individual must be an American citizen or legal resident, be enrolled in a health plan through either Covered California or the Health Insurance Marketplace, and must have an income between 100 and 400 percent of the Federal Poverty Line. In addition, the individual must be enrolled in a Silver-level health plan to get the CSR. Once the individual qualifies, they can receive a reduction up to 94 percent in out-of-pocket costs like copays and deductibles. For example, if an individual were to be enrolled in a Silver-level health plan, the out-of-pocket costs could be reduced from $3,000 to just $200. This would be a significant reduction in cost for those who qualify for such a discount. Ultimately, the cost sharing reduction (CSR) is a government benefit available to those who qualify that can help offset the rising costs of health insurance. Those who qualify can receive reductions in their out-of-pocket costs that can be quite substantial. For anyone looking to reduce the cost of health care in California, the CSR could be the answer.

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What is a cost sharing reduction (CSR)?

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