Cost-Sharing Reductions (CSR) are extra savings that lower a client’s out-of-pocket costs on an ACA Marketplace plan.
When completing an ACA enrollment in MyMFG, understanding CSR helps ensure clients select the most cost-effective plan based on their eligibility.
How Clients Qualify
After submitting a Marketplace application with household and income information, a client may qualify for:
Premium Tax Credits (APTC) – lowers the monthly premium
Cost-Sharing Reductions (CSR) – lowers out-of-pocket costs
CSR eligibility is based on household income and Federal Poverty Level (FPL).
The lower the income within the eligible range, the greater the CSR savings.
Where to See CSR in MyMFG
During the quote process in MyMFG, you can view:
The client’s CSR level
Their Federal Poverty Level (FPL) percentage
Their estimated subsidy (APTC)
This information appears within the quote results and helps you guide plan selection appropriately.
Always review this section before finalizing enrollment.
Important: CSR Only Applies to Silver Plans
If a client qualifies for CSR:
They must enroll in a Silver plan to receive the additional savings.
If they enroll in a Bronze or Gold plan, they can still use APTC, but CSR will not apply.
When enrolling, confirm:
The client’s CSR level
That a Silver plan is selected if they want the enhanced cost-sharing benefits
How CSR Lowers Costs
If eligible and enrolled in a Silver plan, CSR reduces:
Deductible – The plan starts paying sooner
Copays / Coinsurance – Lower cost per visit or service
Out-of-Pocket Maximum – Lower annual maximum spending limit
This can make a Silver plan more affordable overall, even if the premium is slightly higher than Bronze.
You can read more about cost sharing reductions in healthcare.gov