Implications of Instituting Copayments and Premium Cost-Sharing

At the SCHIP Workshop held in Sanibel Island, Florida, on June 29-July 1, 1998, Judith Arnold talked about the implication of instituting copayments and premium cost-sharing.  The following represents information taken from Ms. Arnold's presentation.

Instituting cost-sharing may benefit a State health program by:

• Deterring unnecessary utilization of services.

• Encouraging personal responsibility.

• Defraying the government share of cost for subsidized health care coverage.

• Reducing substitution of private coverage (crowd-out).

However, common concerns regarding instituting cost-sharing are:

• Reduced enrollment as an effect of premiums that are perceived as too costly.

• Reduced utilization of needed services resulting from unaffordable copayments.

• Total cost-sharing amounts are difficult to monitor.

Related Questions

Give me more details

• Copayment Advantages and Disadvantages
• Premium Cost-Sharing Advantages and Disadvantages

Give me an overall context

• Overview of Cost-Sharing

Give me a comparison/contrast to this topic

• How Cost-Sharing Experiences Under SCHIP May Be Different

Give me an example

• Background About New York State's Child Health Plus Program

• Results of the Study "The Use of Sliding Scale Premiums in Subsidized Insurance Programs"

• Details of the Florida Healthy Kids Corporation's Experience

Show me some lessons learned

• What Are the Effects of Copayments and Premium Cost-Sharing on Access and Utilization in State Expansion Programs?

Who presented this material?

• Judith Arnold  and Leighton Ku, Ph.D., M.P.H.