Benefit Buy-Down

A measurement of the reduction in benefits paid by a plan when an insurer or employer (for self-insured plans) increases member cost-sharing requirements to reduce the actuarial value actuarial value
The ratio (expressed as a percentage) of the benefits for which a plan will pay after member cost sharing to the total allowed covered benefits.  For example, if a plan has an actuarial value of 70%, on average, members would be responsible for 30% of the costs of all allowed covered benefits. of the benefits in a plan.  This tactic is typically used to partially offset increasing health care costs.