Cost-sharing reductions (CSR) that lower a consumer's deductibles and copayments are available on Covered California silver plans to individuals with income between:

Why A is correct

Cost-sharing reductions are subsidies available only on silver-tier plans to individuals with household income between 138% and 250% of the federal poverty level. They lower the out-of-pocket amounts consumers pay, such as deductibles, copayments, and coinsurance, beyond what the silver plan's 70% actuarial value would otherwise provide. Because CSR applies only to silver plans, choosing a gold or bronze plan forfeits the subsidy. This income band is a tested element of the MAGI eligibility material in AH-III.C.2.

Why the other options are wrong

• B) Income above 400% FPL does not qualify for CSR, which is capped at 250% FPL.
• C) Below 138% FPL, consumers qualify for Medi-Cal rather than exchange CSR benefits.
• D) The 250%-to-400% band may qualify for premium tax credits but not for cost-sharing reductions.

Memory hook

CSR lives in the 138-250 sweet spot, and only on silver.

Why B is correct

CSR lowers the out-of-pocket costs of eligible marketplace enrollees, but the subsidy is available only on Silver-tier plans. The ACA sets the eligibility band at 138%-250% FPL, so households in that income range who choose a Silver plan receive reduced deductibles, copayments, and coinsurance, and a lower out-of-pocket maximum. Below 138% FPL individuals typically qualify for Medi-Cal instead, and enrollees above the band do not receive CSRs.

Why the other options are wrong

• A) Below 138% FPL, adults generally qualify for Medi-Cal rather than a marketplace CSR; Bronze is not the tier that carries CSR benefits.
• C) The 250%-400% band may receive premium tax credits, but cost-sharing reductions stop at 250% FPL.
• D) CSRs are not available at 0%-138% FPL because Medi-Cal covers that population, and Platinum is not the CSR tier.

Memory hook

CSR lives on Silver, between 138% and 250% FPL. Lower copays, but only if you pick Silver.