According to the Affordable Care Act, which metal tier is required to have an actuarial value of 70%?

According to the Affordable Care Act, which metal tier is required to have an actuarial value of 70%?

• A. Bronze Plan
• B. Silver Plan
• C. Gold Plan
• D. Platinum Plan

Answer: (B)

The correct answer is that the Bronze Plan is required to have an actuarial value of 60%, while the Silver Plan is designated with a 70% actuarial value. The actuarial value indicates the percentage of total healthcare costs that a plan will cover on average for a standard population. The Silver Plan strikes a balance between premium costs and out-of-pocket expenses, ensuring that while premiums are lower than those of higher tiers like the Gold and Platinum Plans, it provides a reasonable level of coverage that meets the ACA standards. This tier was specifically designed to appeal to a wide range of consumers, especially those who may be eligible for cost-sharing reductions, leading to improved affordability in accessing healthcare. The Gold and Platinum Plans offer higher actuarial values of 80% and 90% respectively, making them more comprehensive but also more expensive. The Bronze Plan, on the other hand, focuses on lower premiums at the cost of higher out-of-pocket expenses, which means it would attract a different demographic looking primarily for budget-friendly options rather than comprehensive coverage. Thus, the Silver Plan stands out as the correct choice for a required actuarial value of 70% under the ACA guidelines.

The correct answer is that the Bronze Plan is required to have an actuarial value of 60%, while the Silver Plan is designated with a 70% actuarial value. The actuarial value indicates the percentage of total healthcare costs that a plan will cover on average for a standard population.

The Silver Plan strikes a balance between premium costs and out-of-pocket expenses, ensuring that while premiums are lower than those of higher tiers like the Gold and Platinum Plans, it provides a reasonable level of coverage that meets the ACA standards. This tier was specifically designed to appeal to a wide range of consumers, especially those who may be eligible for cost-sharing reductions, leading to improved affordability in accessing healthcare.

The Gold and Platinum Plans offer higher actuarial values of 80% and 90% respectively, making them more comprehensive but also more expensive. The Bronze Plan, on the other hand, focuses on lower premiums at the cost of higher out-of-pocket expenses, which means it would attract a different demographic looking primarily for budget-friendly options rather than comprehensive coverage. Thus, the Silver Plan stands out as the correct choice for a required actuarial value of 70% under the ACA guidelines.