Cost Sharing Reductions (CSR) are a unique opportunity available to those who apply for a Silver tier health insurance plan through Marketplace and qualify for a premium tax credit. Cost Sharing Reductions are, in simple terms, a discount reducing the cost of copays and coinsurance. Cost Sharing Reduction plans are a way to make health insurance more accessible by decreasing the copay and coinsurance price and still keeping the out-of-pocket cost reasonable. There are different variations of Cost Sharing Reductions, and your eligibility can vary. Catch can help narrow down and locate CSR plans you may qualify for and bring them to your attention.
Are Cost Sharing Reductions Worth It?
Cost Sharing Reductions are a great tool to save money if you sign up for a Silver plan, but is it worth applying for a Silver plan just to qualify for CSR? It depends. If you are expecting to need access to prescriptions, doctor appointments, and overall medical care often throughout the year, a Silver plan might suit your needs better than a Bronze plan. However, if you don’t expect to need a lot of medical care and are healthy, a Bronze plan might be the best because even though you wouldn’t qualify for CSR, Bronze plans are cheaper than Silver plans. In simple terms, you need to weigh your need for medical care against the variations in cost. If you have more of a need for medical care, Cost Sharing Reductions could be a helpful way to save some money, but if you don’t need extensive medical care, you might not need to qualify for CSR plans.