Certified Application Counselor Practice Test

Which of the following is NOT a method of reduction for Cost-Sharing Reductions (CSRs)?

1. Lower deductible

2. Lower premiums

3. Lower copayments

4. Lower out-of-pocket maximums

The correct answer is: Lower premiums

The correct answer here focuses on identifying what constitutes a Cost-Sharing Reduction (CSR) specifically. Cost-Sharing Reductions are designed to lower the out-of-pocket costs for individuals and families who qualify based on income, making healthcare more affordable. The methods of reduction typically include reducing deductibles, copayments, and out-of-pocket maximums. Each of these adjustments directly affects how much the insured pays when accessing healthcare services, thereby increasing the affordability of insurance for those who receive CSRs. Lowering premiums, however, is not a method encompassed by CSRs. While lowering premiums can be a feature of other programs or subsidies such as premium tax credits, it does not fall under the umbrella of Cost-Sharing Reductions. CSRs specifically address how much individuals have to pay when they utilize their insurance. Therefore, the answer is correctly identified, as lowering premiums is not a method of reduction for CSRs, unlike the other options listed, which directly correspond to cost-sharing aspects of healthcare coverage.