Plan Year 2027 Guidance for Applying Cost Sharing Reduction Load to Individual, On‑Marketplace Silver Plans
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Standardizes how issuers in Arkansas' individual market apply a single, AID-prescribed Cost Sharing Reduction (CSR) load to on‑marketplace Silver plans for plan year 2027; affects all licensed issuers offering individual market plans in Arkansas.
AID provides new, standardized guidance requiring all issuers in the Individual Market to apply a single, AID-determined CSR load to On‑Marketplace Silver plans.
A single CSR load factor will be calculated by AID using a membership-weighted average of Silver plan variants' AVs multiplied by their IDFs, divided by the Base Silver AV×IDF.
AID published an example CSR load of 1.40 using 2026 data; issuers must incorporate this factor for plan year 2027.
Required CSR Load Pricing & Filing Steps
Required pricing and filing steps for CSR load application
Issuer must follow AID-prescribed steps when developing premiums and rate filings for On‑Marketplace Silver plans:
ALL of the following
- Calculate Pricing AV for each Silver plan using only Base Silver benefits (no CSR enhancements).
Pricing AV is the actuarial value reflecting only Base Silver benefits.
- Multiply each Pricing AV by the AID‑prescribed CSR load (e.g., 1.40 for plan year 2027).
This standardizes the CSR load across all issuers for On‑Marketplace Silver plans.
- Apply the prescribed CSR load consistent with single risk pool requirements and reflect any actuarially appropriate adjustments in relative premium relationships across plans.
If issuer offers ARHOME plans, apply rate changes exclusively to ARHOME plans; otherwise apply proportionally to non‑Silver plans.
- Use the final load factor published by AID in advance of the filing deadline and include detailed documentation of methodology, including any enrollment shifts or other assumptions, in Plan Year 2027 rate filings.
AID will review submissions for compliance and reasonableness.
Actuarial Inputs and Calculation Parameters
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Filing Requirements and Required Documentation
Rate filing documentation requirement — include methodology, assumptions, and final AID CSR load
Issuers must include detailed documentation of their CSR load methodology and all assumptions in their Plan Year 2027 rate filings, and must use the final CSR load factor published by AID in advance of the filing deadline. Documentation should cover methodology, any enrollment shifts, and other assumptions; AID will review submissions for compliance and reasonableness.
- Include detailed documentation of methodology.
- Document any enrollment shifts and other assumptions used.
- Use the final AID-published CSR load factor for Plan Year 2027 filings.
- Expect AID review for compliance and reasonableness.
Key Terms and Actuarial Definitions
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