Under the Affordable Care Act, what classification applies to health plans based on covered costs?

The classification of health plans under the Affordable Care Act (ACA) based on covered costs is known as the Metal level classification. This system categorizes plans into four metal levels—bronze, silver, gold, and platinum—that reflect the percentage of healthcare costs that the plan will cover. For example, a bronze plan typically covers about 60% of healthcare costs, while a platinum plan covers roughly 90%. This classification helps consumers understand the level of financial protection a plan offers and how much they can expect to pay out of pocket for medical services.

Other classifications, such as grandfathered and nongrandfathered, refer to the status of a plan concerning ACA regulations, but they do not directly address covered costs. Risk classification generally relates to underwriting and assessing the potential risk of insuring an individual, and guaranteed vs. nonguaranteed refers to certain aspects of life insurance policies rather than health coverage under the ACA. Therefore, the Metal level classification is the most accurate term for categorizing health plans according to the costs they cover.