A new medication for high cholesterol costs $3,500 per year whereas the older medication costs $500 per year. Assuming the treatment needs to be taken from ages 70-79 and increases the age at death from 85 to 85.3 years, what is the cost per life-year saved? Now also assume that quality of life past age 85 is 0.8. What is the cost per quality-adjusted life year saved? Now also assume that a new study shows that the medication improves quality of life past age 85 from 0.8 to 0.9. What does this imply about the cost per quality-adjusted-life-year saved?

A new medication for high cholesterol costs $3,500 per year whereas the older medication costs $500 per year. Assuming the treatment needs to be taken from ages 70-79 and increases the age at death from 85 to 85.3 years, what is the cost per life-year saved? Now also assume that quality of life past age 85 is 0.8. What is the cost per quality-adjusted life year saved? Now also assume that a new study shows that the medication improves quality of life past age 85 from 0.8 to 0.9. What does this imply about the cost per quality-adjusted-life-year saved?

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 4QAP

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