Quick Answer: A Cost-Sharing Reduction (CSR) lowers out-of-pocket costs on Silver Marketplace plans for households earning 100 to 250 percent of the [federal poverty level](/federal-poverty-level) in 2026. The strongest tier, for incomes at or below 150 percent FPL, raises the plan's actuarial value to 94 percent and caps individual out-of-pocket costs at $3,500. You must select a Silver plan on [HealthCare.gov](https://www.healthcare.gov/glossary/cost-sharing-reduction/) to receive the discount. CSRs do not affect Bronze, Gold, or Platinum plans.
Annual Cost-Sharing Reduction (CSR) Limits
Current annual limits| Income (% FPL) | Actuarial Value (2026) | Individual OOP Max (2026) |
|---|
| 100 to 150% | 94% | $3,500 |
| 150 to 200% | 87% | $3,500 |
| 200 to 250% | 73% | $8,450 |
| No CSR (standard Silver) | 70% | Up to $10,600 |
Source: KFF 2026 CSR tiers (kff.org); CMS 2026 revised out-of-pocket limits. Silver plan only. Applies to in-network cost sharing.
Source: https://www.kff.org/faqs/faqs-health-insurance-marketplace-and-the-aca/help-paying-marketplace-premiums-the-basics/how-much-are-the-cost-sharing-subsidies/
CSR vs. Premium Tax Credit: Two Separate Subsidies
The premium tax credit lowers your monthly premium. The CSR lowers your deductible and out-of-pocket maximum after you enroll. Both require eligibility for marketplace coverage and income above 100 percent FPL, but CSRs have a stricter income ceiling of 250 percent FPL and a Silver-plan-only requirement. Check your household's ACA income limits to see which subsidies apply.
Frequently Asked Questions
Do I have to pick a Silver plan to get a CSR?
Yes. CSRs are only activated on Silver-tier Marketplace plans. If you qualify but choose a Bronze or Gold plan, you forfeit the CSR discount. For households at 100 to 200 percent FPL, choosing Silver with CSR typically saves thousands of dollars in out-of-pocket costs compared to any other metal tier.
What is the 2026 income limit to qualify for a CSR?
Your household income must be between 100 and 250 percent of the federal poverty level. In 2026, 250 percent FPL equals $39,900 for a single person and about $82,500 for a family of four. You must also qualify for a premium tax credit, meaning no access to affordable employer coverage or public programs such as Medicaid.
How much does a CSR reduce my out-of-pocket costs in 2026?
At 100 to 200 percent FPL, a CSR drops the Silver plan out-of-pocket maximum from up to $10,600 down to $3,500 for an individual in 2026. At 200 to 250 percent FPL, the cap falls to $8,450. Both tiers also lower deductibles and improve coverage before the cap is met, pushing actuarial value above the standard 70 percent Silver baseline.
