Why do Silver plans sometimes cost as much as Gold?

If you compare plan tiers when setting up your allowance, you may notice that Silver costs about the same as Gold, or sometimes more, even though Gold plans usually have lower deductibles and copays. Here's why.

Silver loading

On the ACA marketplace, some lower-income people get extra help called cost-sharing reductions, which lower their deductibles and copays. That help is only available on Silver plans. To cover its cost, most insurers raise the price of their Silver plans. This is called "silver loading."

The result: in many areas, Gold plans cost close to, or even less than, Silver plans.

What this means for you

• Compare Silver and Gold before you choose. If they cost about the same, Gold usually gives your employees more coverage for the money.
• Silver can still be a good fit. In some areas it's noticeably cheaper than Gold and makes a sensible middle ground.
• Your employees can choose any plan. The tier you pick only sets your contribution. Employees can still use their allowance on a Bronze, Silver, Gold or other qualifying plan.