Issues in Developing Programs for Uninsured Children: A Resource Book for States. 1. Price Sensitivity


It is important to recognize the importance of price sensitivity among families when establishing levels for premiums and copayments. "Price sensitivity" refers to the level of premiums and copayments that families perceive to be affordable. It is important to note that price sensitivity may not always be what families can afford, but rather what they are willing to pay for health care services. States’ consideration of cost-sharing levels is critical to assuring the success of a children’s health insurance program, as it influences the families' incentives to enroll in a program and utilize services.