What does Cost Sharing Reduction (CSR) Mean?

Cost Sharing Reduction is a discount that lowers the amount you have to pay for deductibles, copayments, and coinsurance. In the Health Insurance Marketplace, cost-sharing reductions are often called “extra savings.” If you qualify, you must enroll in a plan in the Silver category to get the extra savings.

• When you fill out a Marketplace application, you’ll find out if you qualify for premium tax credits and extra savings. You can use a premium tax credit for a plan in any metal category. But if you qualify for extra savings too, you’ll get those savings only if you pick a Silver plan.

• If you qualify for cost-sharing reductions, 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.

Important: If you qualify for Cost Sharing Reduction, you must select a Silver plan to receive the CSR benefits. If you do not select a "Silver" plan, you will not receive the cost sharing reductions, even if you select a Bronze plan with less benefits. In most cases, anyone that qualifies for CSR should select a Silver plan.