Saving money on health insurance
Cost-sharing reductions
After you fill out an application with the Marketplace and provide household and income information, youâll find out if you qualify for theÂ
 that lowers your monthly health insurance bill.
Youâll also find out if your income qualifies you for extra savings known as â
.â If it does, you can save money a second way â by paying less out of pocket each time you get medical services.
Do you qualify for cost-sharing reductions?
- If it does fall in the range, the amount you'll save on out-of-pocket costs depends on your specific income estimate. The lower your income within the range, the more you'll save.
- You'll find out exactly how much you'll save only after you apply and shop for Silver plans in the Marketplace.
How cost-sharing reductions work
If you qualify for savings on out-of-pocket costs and enroll in a Silver plan:
- You'll have a lower deductible. This means the insurance plan starts to pay its share of your medical costs sooner. For example, if a particular Silver plan has a $750 deductible, you have to pay the first $750 of medical care yourself before the insurance company pays anything (other than for free preventive services). But if you qualify for cost-sharing reductions, your deductible for a Silver plan could be $300 or $500, depending on your income.
- You'll have lower copayments or coinsurance. These are the payments you make each time you get care â like $30 for a doctor visit. If a Silver plan's copayment is $30 for a doctor's visit, if you enroll in the plan and qualify for extra savings, you may pay $20 or $15 instead.
- You'll have a lower "out-of-pocket maximum."Â This means the total amount you'd have to pay in a year if you used a lot of care, like if you got seriously sick or had an accident, would be lower. Instead of $5,000, your out-of-pocket maximum for a particular Silver plan could be $3,000.
Note:Â These examples explain how cost-sharing reductions work. Your costs will vary depending on which plan you pick.
Plans in all categories have a wide range of deductibles, copayments/coinsurance, and out-of-pocket maximums. You'll know exactly how much you save on out-of-pocket costs only when you shop for Silver plans in the Marketplace.
American Indians and Alaska Natives and cost-sharing reductions
More answers: Cost-sharing reductions
After you apply for Marketplace coverage, check your Eligibility Determination Notice. If it says "Can choose a health plan with lower copayments, coinsurance, and deductibles" and is followed by (04), (05), or (06), you qualify for income-based savings â but only if you pick a Silver plan.
No. Cost-sharing reductions apply only to Silver plans. (Catastrophic plans are also not eligible for the tax credit, no matter what your income is.)