Certified Application Counselor Practice Test

What is the primary purpose of Cost-Sharing Reductions (CSRs)?

1. To lower premiums for all consumers

2. To reduce out-of-pocket costs for eligible consumers

3. To provide access to Medicaid services

4. To ensure tax benefits on premiums

The correct answer is: To reduce out-of-pocket costs for eligible consumers

Cost-Sharing Reductions (CSRs) are designed specifically to decrease out-of-pocket costs for eligible consumers who purchase health insurance through the Marketplace. This means that individuals and families who qualify for CSRs, based on their income and household size, can benefit from reduced deductibles, copayments, and coinsurance. The primary goal of CSRs is to make healthcare more affordable by lowering the amount that consumers have to pay when they access healthcare services. By providing these reductions, CSRs aim to increase the affordability of health insurance plans for those with lower incomes, enabling them to receive necessary care without facing prohibitive costs. This helps to ensure that healthcare remains accessible to a broader range of individuals, promoting overall public health and well-being. The other options touch on important aspects of health coverage and the Marketplace, but they do not capture the specific focus of CSRs. Lowering premiums for all consumers is not the primary role of CSRs, as they are targeted specifically at reducing out-of-pocket expenses for qualifying individuals rather than affecting premium rates across the board. Providing access to Medicaid services is a separate program that targets a different demographic. Lastly, tax benefits on premiums may relate to different aspects of healthcare financing but are not the core purpose of CSRs