Health Insurance
Cost-Sharing Reduction (CSR)
CSRs reduce out-of-pocket costs for Silver plan enrollees with household incomes between 100% and 250% of the federal poverty level.
Last reviewed: May 2026 · Editorial methodology
Definition
Cost-Sharing Reductions (CSRs) are federal subsidies that reduce the deductibles, copays, coinsurance, and out-of-pocket maximum amounts on Silver-tier marketplace plans for eligible enrollees. To receive a CSR, a person must enroll in a Silver plan and have a household income between 100% and 250% of the federal poverty level (FPL). CSRs are layered: those earning 100–150% FPL receive the most generous reduction, typically bringing the Silver plan's actuarial value close to a Platinum plan; those at 150–200% FPL receive a moderate reduction; and those at 200–250% FPL receive a smaller reduction. Critically, CSRs are available only on Silver plans — choosing a Bronze or Gold plan makes you ineligible even if you qualify by income. Because insurers must fund CSRs regardless of whether the federal government appropriates reimbursement funds, they have embedded CSR costs into Silver plan premiums in many states, sometimes inflating Silver premiums relative to other tiers — a strategy called 'Silver loading.' When Silver loading occurs, it can increase premium tax credit amounts and make Gold plans unexpectedly cheaper than Silver.
Where this term matters
💡 Tip
Related terms
Related guides
Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
Get Insurance Rate Alerts
We monitor rate filings in all 50 states. Get notified when rates change in your area — and discover new ways to save.
- ✓State-specific rate change alerts
- ✓Seasonal enrollment deadline reminders
- ✓Expert tips to lower your premiums
- ✓New coverage options in your state
Free forever. Unsubscribe with one click. No spam, ever.
Important Disclaimer
This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.