Utilization under children's health insurance programs: children with vs. without chronic conditions

States planning to expand health insurance for children need information on projected utilization. We examine these issues using data from children's health insurance programs in Pennsylvania. We estimate the average cost of a comprehensive benefit package for a continuously enrolled child during 1994-1995 was about $500 ($1,208 for a child with a chronic condition, and $454 for one without). There was wide variation by type of service. This underestimates the cost of new programs because some very sick children were excluded and because the average monthly cost of a continuously enrolled child is lower than that of a new enrollee.