Under the Affordable Care Act, how are health plans classified?

Health plans under the Affordable Care Act (ACA) are classified based on their actuarial value, which indicates the percentage of total average costs for covered benefits that a plan will pay. The correct classification uses metallic categories: Bronze, Silver, Gold, and Platinum.

Each category provides a different level of coverage and associated premium costs. For example, a Bronze plan typically covers about 60% of healthcare costs, with the policyholder responsible for about 40%, while a Platinum plan covers approximately 90%, requiring the insured to cover only 10%. This system allows consumers to choose a plan that best fits their financial situation and healthcare needs.

By understanding these classifications, consumers can more easily compare plans and determine which level of coverage aligns with their anticipated healthcare usage and budget.