South Carolina Insurance Practice Exam

According to the Affordable Care Act, what is the actuarial value for a Silver Plan?

1. 60%

2. 70%

3. 80%

4. 90%

The correct answer is: 70%

The actuarial value of a Silver Plan under the Affordable Care Act is indeed 70%. This means that, on average, a Silver Plan will cover approximately 70% of the total healthcare costs for a typical population, while the remaining 30% will be the responsibility of the insured individual in the form of deductibles, copayments, and coinsurance. The Silver Plan is one of the four metal tiers established by the Affordable Care Act, which also includes Bronze, Gold, and Platinum plans, categorized by their respective actuarial values. Bronze plans have an actuarial value of about 60%, Gold plans around 80%, and Platinum plans close to 90%. This tier structure helps consumers understand the level of coverage they can expect and assists them in making informed choices based on their healthcare needs and financial situations.