Arizona Health Insurance Practice Exam

What is the actuarial value of a bronze level health plan in the ACA framework?

1. 50

2. 60

3. 70

4. 80

The correct answer is: 60

The actuarial value of a bronze level health plan under the Affordable Care Act (ACA) framework is established at 60%. This means that, on average, a bronze plan is designed to cover 60% of the total healthcare costs for a typical population, while the remaining 40% would be the responsibility of the insured individuals through deductibles, copayments, and coinsurance. These levels are part of a metal tier system that categorizes health plans based on their actuarial value. The bronze level is the lowest tier among the standardized options, which also include silver, gold, and platinum levels, with each subsequent tier covering a higher percentage of costs. This classification helps consumers understand the level of coverage they can expect and the proportion of healthcare costs they will need to pay out of pocket.