Cost-sharing subsidies are subsidies that are paid directly from the federal government to the insurer in order to reduce maximum out-of-pocket medical expenses (deductibles, coinsurance, copays) for households with incomes up to 250 percent of the Federal Poverty Level, and to also increase the Actuarial Value of plans for households with incomes up to 250 percent of FPL.
Use our Federal Poverty Level calculator.
In order to receive this benefit, the enrollee must meet the income criteria and select a Silver plan through the exchange. The subsidies are not considered a tax credit and do not need to be reconciled when the insureds file their taxes.
Read more about cost-sharing subsidies.