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What is a cost-sharing reduction?

You may qualify for savings on out-of-pocket costs known a “cost-sharing reduction” if your income is 250% of the federal poverty level or less. If you are an American Indian or Alaska Native, you may qualify for a cost-reduction if your income is 300% of the federal poverty or less. Additionally, if you are an American Indian or Alaska Native, regardless of income, you won’t have any out-of-pocket costs for items or services provided by the Indian Health Service, tribal programs, or urban Indian programs (known as I/T/Us), including Contract Health Services.

A cost sharing reduction lowers the amount you have to pay for out-of-pocket costs like deductibles, coinsurance, and copayments. These are costs you have to pay when you get care.

In addition to meeting the household size and income requirements, you must buy a plan in the Silver category in order to receive a cost-sharing reduction.