Certified Application Counselor Practice Test

Cost-sharing reductions are designed to help lower-income individuals and families reduce their out-of-pocket costs for healthcare when they enroll in health plans offered through the Health Insurance Marketplace. The eligibility criteria specifically target those with household incomes between 100% and 250% of the federal poverty level (FPL). This range ensures that the support reaches those who may struggle to afford healthcare costs but do not qualify for Medicaid.

This is important because cost-sharing reductions can significantly lower deductibles, copayments, and coinsurance, making essential health services more accessible for individuals who fall within this income bracket. By providing these reductions, the goal is to enhance affordability and encourage more people to seek the care they need without the burden of excessive costs.

The other options do not meet the criteria for cost-sharing reductions, as they either include individuals who do not fall within the specified income range or refer to populations, like those on Medicaid, that have different forms of financial assistance.