Cost-Sharing Reduction Payments

Cost-Sharing Reduction (CSR) Payments are funds the government provides to health insurance companies to lower out-of-pocket costs—like deductibles, copayments, and coinsurance—for low-income individuals purchasing marketplace health plans. These payments make healthcare more affordable for vulnerable populations by reducing their financial burden when they access care. CSR payments are intended to bridge the gap between what low-income consumers can pay and the actual costs of services, encouraging wider coverage and access to necessary health services. The payments are made periodically to insurers to support these lowered costs for qualifying enrollees.