What does a 73% cost sharing reduction mean?

Asked by: Nels Roberts II  |  Last update: March 15, 2025
Score: 4.4/5 (17 votes)

A 73% cost sharing reduction means that your insurance company will pay an average of 73% of your health care costs while you'll pay the remaining 27%. This is a better deal than a regular Silver plan where you'll pay 30% of your medical costs.

What does cost sharing reduction mean?

cost-sharing reductions. A discount that lowers the amount you have to pay for deductibles, copayments, and coinsurance. In the Health Insurance Marketplace®, cost-sharing reductions are often called “extra savings.” If you qualify, you must enroll in a plan in the Silver category to get the extra savings.

What does 20% cost share mean?

Let's say your health plan has co-‐insurance of 20% for urgent care services. If the insurer allows $1,000 for your visit, your co-‐insurance will be $200 (20% of $1,000). Unlike co-‐payments, your cost-‐sharing will change depending on how much the insurer allows for the service.

Who is eligible for the Silver 73 cost share reduction plan was just expanded?

As a result, in 2025 Californians with incomes above 200 percent of the federal poverty level (FPL) will be eligible to enroll in an Enhanced Silver 73 plan with no deductibles and reduced out-of-pocket costs, while those under 200 percent FPL will continue to have access to higher levels of benefits.

What does cost sharing price mean?

The share of costs covered by your insurance that you pay out of your own pocket. This term generally includes deductibles, coinsurance, and copayments, or similar charges, but it doesn't include premiums, balance billing amounts for non-network providers, or the cost of non-covered services.

How Do Cost-Sharing Reductions Work? - InsuranceGuide360.com

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Is cost sharing good or bad?

In this study, both low and high levels of cost sharing, in comparison with no cost sharing, were associated with less use of medical care for minor symptoms. Cost sharing was also associated with lower rates of seeking care for serious symptoms, but only at the highest cost-sharing level.

Does share price mean anything?

Share price refers to the value of a company's stock. The total value of a publicly traded company is called its market capitalization ("market cap"), which is arrived at by adding up the value of all of the stock outstanding.

What does a 73 cost-sharing reduction mean?

A 73% cost sharing reduction means that your insurance company will pay an average of 73% of your health care costs while you'll pay the remaining 27%. This is a better deal than a regular Silver plan where you'll pay 30% of your medical costs.

What is the difference between Silver 73 and Silver 70?

Unlike the other coverage levels, Silver comes in four varieties: Standard Silver (also known as Silver 70), Silver 73, Silver 87 and Silver 94. The numbers refer to the percentage of expenses paid by your plan, with you picking up the rest (for Silver 73, you're on the hook for 27 percent of your expenses).

What is an example of cost-sharing?

The same covered item or service may itself have different cost-sharing charges; for example, generic drugs may require a $10 copayment, preferred brand-name drugs a $25 copayment, and other high-cost drugs 50 percent coinsurance.

How does cost share work?

Cost sharing or matching is that portion of the project or program costs that are not paid by the funding agency. Costing sharing includes all contributions, including cash and in-kind, that a recipient makes to an award.

Are silver health plans worth it?

Those who need to balance their annual healthcare costs: Silver plans strike a balance between a plan's monthly premium and out-of-pocket costs for care. They may make sense if you or your family have moderate healthcare needs throughout the year.

How can I lower my health insurance premium?

Find out if your estimated income is in the range to qualify for the premium tax credit. You can apply some or all of this tax credit to your monthly insurance premium payment. The Marketplace will send your tax credit directly to your insurance company, so you'll pay less each month.

How do I know if I qualify for cost sharing reduction?

If you make under 250% of the Federal Poverty Level (under $64,505 for a family of four), you may qualify for cost sharing reduction (CSR). This means better benefits for you at the same monthly premium. For example, instead of paying a $45 doctor visit, cost sharing may lower your doctor visit copayment down to $5.

How does cost reduction work?

There are a variety of strategies companies use to reduce costs. Some common techniques include reviewing current spending, streamlining processes, negotiating with suppliers, and using technology to automate tasks. Cost reduction can also be achieved by reducing waste and improving efficiency.

What is the silver 73 plan?

This health insurance plan is for individuals and families with an annual gross income between 201% to 250% of the federal poverty level (FPL), who also meet other applicable guidelines. This would be a good plan for a 40-year-old with an income between 200% ($24,120) and 250% ($30,150).

Is Platinum better than gold insurance?

On average, Platinum-level plans cover 90 percent of health care costs, and you pay 10 percent; Gold plans cover 80 percent, while you pay 20 percent; Silver plans cover 70 percent, while you pay 30 percent; and Bronze plans cover 60 percent, while you pay 40 percent.

What is the difference between generic silver and premium silver?

The precious metals market often differentiates between “generic silver” and “premium silver”. The former typically refers to privately minted rounds, bars, or ingots, valued mainly for their silver content. They provide an affordable route to acquire silver.

Do I have to pay back cost sharing reduction?

Unlike the premium subsidies, cost-sharing reductions are not provided as a tax credit and they do not have to be “reconciled” when people file their taxes for the year they received cost-sharing reductions.

What happens if I overestimate my income for marketplace insurance?

If you overestimate your income and end up claiming less help than you are entitled to, the difference will be refunded to you when you file your income taxes the following year.

Is a higher or lower share price better?

High-priced stocks have proved and delivered high returns in both short and long-term periods. For higher-priced stocks, investors need to make a significant investment in the beginning. Although high-priced stocks have chances of going down, they give very high returns most of the time.

What is a good PE ratio?

To give you some sense of what the average for the market is, though, many value investors would refer to 20 to 25 as the average P/E ratio range. And again, like golf, the lower the P/E ratio a company has, the better an investment the metric is saying it is.

How to understand share price?

A stock's price is merely that: the amount of money one share is trading at. However, a company's value depends on that price multiplied by the outstanding shares. This market capitalization reflects the present consensus value for the company.