Georgia Access Agent Certification Practice Exam

The purpose of Cost-sharing Reductions (CSRs) is to reduce out-of-pocket costs for low-income individuals. CSRs are designed to make healthcare more affordable for those who may struggle to pay deductibles, copayments, and coinsurance associated with their health insurance plans, particularly for plans purchased through the Health Insurance Marketplace.

These reductions lower the amount of money a policyholder must pay when they receive healthcare services, making essential medical care more accessible. Individuals who qualify for CSRs typically have incomes between 100% to 250% of the Federal Poverty Level, and they benefit from lower out-of-pocket expenses when they utilize their health insurance.

The other options do not align with the function of CSRs. Increasing premium costs contradicts the purpose of making healthcare more affordable. Limiting enrollment in Qualified Health Plans (QHPs) is not a function of CSRs, as CSRs are intended to encourage enrollment by making plans more affordable for eligible individuals. Lastly, providing coverage for age-related illnesses does not specifically relate to CSRs, as these reductions are focused solely on out-of-pocket costs rather than the scope of coverage for specific conditions.