ACA Cost-Sharing Reductions: How They Work and What Changes May Mean for You

What are Cost-Sharing Reductions?

Cost-sharing reductions (CSRs) are subsidies that help lower-income individuals and families afford health insurance premiums and out-of-pocket costs, including deductibles, copayments, and coinsurance. CSRs are available to individuals and families with incomes between 100% and 250% of the federal poverty level (FPL).

How CSRs Work

CSRs are paid directly to health insurance companies, which then pass the savings on to policyholders in the form of lower premiums and reduced out-of-pocket costs. The amount of the CSR depends on the individual’s or family’s income and the plan they choose.

Changes in CSR Payments

In 2017, the Trump administration announced that it would stop making CSR payments to health insurance companies. This decision has been challenged in court, and the outcome is still uncertain. If the CSR payments are ultimately cut off, it could lead to higher health insurance premiums and out-of-pocket costs for millions of Americans.

What This Means for You

If you receive CSRs, it is important to understand how the changes may affect you. You may want to contact your insurance company or a licensed agent to discuss your options. You can also visit for more information.

Additional Considerations

In addition to the potential changes in CSR payments, there are a number of other factors that could affect the cost of health insurance in the future. These factors include:

The outcome of the legal challenges to the Trump administration’s efforts to repeal and replace the ACA.
The actions of state governments to implement or expand access to affordable health insurance.
The overall state of the economy and the health care industry.

It is important to stay informed about these changes and to make informed decisions about your health insurance coverage.

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