What determines the level of price distortion and price sensitivity? The extent of price distortion is a function of the completeness of the insurance. The fuller the insurance,the greater the price distortion The extent of price sensitivity depends mostly on the nature of the risk being insured,and how controllable it is Consider Huntington's disease vs heart attacks Bhattacharya,Hyde and Tu-HealthEconomicsBhattacharya, Hyde and Tu – Health Economics What determines the level of price distortion and price sensitivity?  The extent of price distortion is a function of the completeness of the insurance.  The fuller the insurance, the greater the price distortion  The extent of price sensitivity depends mostly on the nature of the risk being insured, and how controllable it is  Consider Huntington’s disease vs heart attacks