Skip to main content
×
Home
    • Aa
    • Aa
  • Get access
    Check if you have access via personal or institutional login
  • Cited by 9
  • Cited by
    This article has been cited by the following publications. This list is generated based on data provided by CrossRef.

    Gusmano, Michael K. 2015. Objections to the use of cost-effectiveness analysis in the US: reflecting on ‘Has the time come for cost-effectiveness analysis in US health care?’. Health Economics, Policy and Law, Vol. 10, Issue. 04, p. 419.


    Miller, Jeffrey D. Lenhart, Gregory M. Bonafede, Machaon M. Lukes, Andrea S. and Laughlin-Tommaso, Shannon K. 2015. Cost-Effectiveness of Global Endometrial Ablation vs. Hysterectomy for Treatment of Abnormal Uterine Bleeding: US Commercial and Medicaid Payer Perspectives. Population Health Management, Vol. 18, Issue. 5, p. 373.


    Chambers, James D. 2014. Do Changes in Drug Coverage Policy Point to an Increased Role for Cost-Effectiveness Analysis in the USA?. PharmacoEconomics, Vol. 32, Issue. 8, p. 729.


    Chambers, James D. Lord, Joanne Cohen, Joshua T. Neumann, Peter J. and Buxton, Martin J. 2013. Illustrating Potential Efficiency Gains from Using Cost-Effectiveness Evidence to Reallocate Medicare Expenditures. Value in Health, Vol. 16, Issue. 4, p. 629.


    Dixon, Anna and Poteliakhoff, Emmi 2012. Back to the future: 10 years of European health reforms. Health Economics, Policy and Law, Vol. 7, Issue. 01, p. 1.


    McGuire, Alistair 2012. The European value-pricing game. Expert Review of Pharmacoeconomics & Outcomes Research, Vol. 12, Issue. 1, p. 5.


    van de Wetering, Gijs Woertman, Willem H. and Adang, Eddy M. 2012. Time to incorporate time in cost-effectiveness analysis. The European Journal of Health Economics, Vol. 13, Issue. 3, p. 223.


    Byford, Sarah Barrett, Barbara Dubourg, Richard Francis, Jennifer and Sisk, Jane 2010. Evidence-Based Decisions and Economics.


    Grieve, Richard Guerriero, Carla Walker, Jemma Tomlin, Keith Langham, Julia Harding, Simon Chakravathy, Usha Carpenter, James and Reeves, Barnaby C. 2009. Verteporfin Photodynamic Therapy Cohort Study. Ophthalmology, Vol. 116, Issue. 12, p. 2471.


    ×

Has the time come for cost-effectiveness analysis in US health care?

  • STIRLING BRYAN (a1), SHOSHANNA SOFAER (a2), TARYN SIEGELBERG (a3) and MARTHE GOLD (a3)
  • DOI: http://dx.doi.org/10.1017/S1744133109004885
  • Published online: 01 October 2009
Abstract
Abstract

Cost-effectiveness analysis (CEA) is a powerful analytic tool for assessing the value of health care interventions but it is a method used sparingly in the US. Despite its growing acceptance internationally and its endorsement in the academic literature, most policy analysts have assumed that US decision makers will resist using CEA to inform coverage decisions. This study sought to clarify the extent to which CEA is understood and accepted by US decision makers, including regulators, private and public insurers, and purchasers, and to identify their points of difficulty with its use. We conducted half-day workshops with a sample of six California-based health care organizations that spanned a range of public and private perspectives regarding coverage of health care services. Each workshop included an overview of CEA methods, a priority-setting exercise that asked participants (acting as ‘social decision makers’) to rank condition treatment pairs prior to and following provision of cost-effectiveness information; and a facilitated discussion of obstacles and opportunities for using CEA in their own organizations. Pre and post-questionnaires inquired as to obstacles toward implementing CEA, attitudes toward rationing, and views on the use of CEA in Medicare and in private insurance coverage decision-making. In post-workshop surveys major obstacles identified included: fears of litigation, concerns about the quality and accuracy of studies that were commercially sponsored, and failure of CEAs to address shorter horizon cost implications. Over 90% of participants felt that CEA should be used as an input to Medicare coverage decisions and 75% supported its use in such decisions by private insurance plans. Despite the wide acceptance of CEA, at the conclusion of the workshop, 40% of the sample remained uncomfortable with support of ‘rationing’ per se. We suggest that how cost-effectiveness analysis is framed will have important implications for its acceptability to US decision makers.

Copyright
Corresponding author
*Corresponding author: Marthe Gold, MD, MPH, Department of Community Health and Social Medicine, City College, City University of New York Medical School, 138th Street and Convent Avenue, Harris 406, New York, NY 10031, USA. Email goldmr@med.cuny.edu
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

M.J. Al , T. Feenstra , and W.B. Brouwer (2004), ‘Decision makers’ views on health care objectives and budget constraints: results from a pilot study’, Health Policy, 70(1): 3348.

S.L. Aspinall , C.B. Good ,P.A. Glassman , and M.A. Valentino (2005), ‘The evolving use of cost-effectiveness analysis in formulary management within the department of veterans affairs’, Medical Care, 43(7 Suppl), 2026.

H.D. Banta and B.R. Luce (1983), ‘Assessing the cost-effectiveness of prevention’, Journal of Community Health, 9(2): 145165.

C.M. Bell , D.R. Urbach J.G. Ray ,A. Bayoumi ,A.B. Rosen D. Greenberg , and P.J. Neumann (2006), ‘Bias in published cost effectiveness studies: systematic review’, British Medical Journal, 332(7543): 699703.

M.G. Bloche and P.D. Jacobson. (2000), ‘The Supreme Court and bedside rationing’, Journal of the American Medical Association, 284(21): 27762779.

S. Bryan , I.P. Williams , and S. McIver (2007), ‘Seeing the NICE side of cost-effectiveness analysis: a qualitative investigation of the use of CEA in NICE technology appraisals’, Health Economics, 16(2), 179193.

N. Daniels and J. Sabin (2002), Setting Limits Fairly: Can We Learn to Share Medical Resources? New York: Oxford University Press.

S.B. Foote (2002), ‘Why Medicare cannot promulgate a national coverage rule: a case of regulamortis, Journal of Health Politics, Policy and Law, 27(5): 707730.

A.M. Garber (2001), ‘Evidence-based coverage policy’, Health Affairs (Millwood), 20(5): 6282.

M.R. Gillick (2004), ‘Medicare coverage for technological innovations – time for new criteria?’, New England Journal of Medicine, 350(21): 21992203.

M.R. Gold , D. Stevenson and D.G. Fryback (2002), ‘HALYS and QALYS and DALYS, oh my: similarities and differences in summary measures of population health’, Annual Review of Public Health, 23: 115134.

M.R. Gold , P. Franks , T. Siegelberg , and S. Sofaer (2007), ‘Does providing cost-effectiveness information change coverage priorities for citizens acting as social decision makers?’, Health Policy, 83(1): 6572.

M.R. Gold , S. Sofaer and T. Siegelberg (2007), ‘Medicare and cost-effectiveness analysis: time to ask the taxpayers’, Health Affairs, 26(5): 13991406.

D.C. Hadorn (1991), ‘Setting health care priorities in Oregon: cost-effectiveness meets the rule of rescue’, Journal of the American Medical Association, 265(17): 22182225.

J. Harris (1987), ‘QALYfying the value of life’, Journal of Medical Ethics, 13(3): 117123.

J. Harris (1988), ‘Life: quality, value and justice’, Health Policy, 10(3): 259266.

D.A. Henry , S.R. Hill and A. Harris (2005), ‘Drug prices and value for money: the Australian Pharmaceutical Benefits Scheme’, Journal of the American Medical Association, 294(20): 26302632.

P.D. Jacobson and M.L. Kanna (2001), ‘Cost-effectiveness analysis in the courts: recent trends and future prospects’, Journal of Health Politics, Policy and Law, 26(2): 291326.

J.P. Kassirer and M. Angell (1994), ‘The journal's policy on cost-effectiveness analyses’, New England Journal of Medicine, 331(10): 669670.

T. Koch (2000), ‘Life quality v. the “quality of life”: assumptions underlying prospective quality of life instruments in health care planning’, Social Science and Medicine, 51(3): 419427.

B.R. Luce (2005), ‘What will it take to make cost-effectiveness analysis acceptable in the United States?’, Medical Care, 43(7 Suppl): 4448.

P. Menzel , M.R. Gold E. Nord , J.L. Pinto-Prades , J. Richardson , and P. Ubel (1999), ‘Toward a broader view of values in cost-effectiveness analysis of health’, Hastings Center Report, 29(3): 715.

A.H. Miners , M. Garau , D. Fidan and A.J. Fischer (2005), ‘Comparing estimates of cost effectiveness submitted to the National Institute for Clinical Excellence (NICE) by different organizations: retrospective study’, British Medical Journal, 330(7482): 65.

P.J. Neumann (2004a), ‘Evidence-based and value-based formulary guidelines’, Health Affairs (Millwood), 23(1): 124134.

P.J. Neumann , A.B. Rosen and M.C. Weinstein (2005), ‘Medicare and cost-effectiveness analysis’, New England Journal of Medicine, 353(14): 15161522.

E. Nord , J.L. Pinto J. Richardson P. Menzel and P. Ubel (1999), ‘Incorporating societal concerns for fairness in numerical valuations of health programmes’, Health Economics, 8(1): 2539.

J. Rawles (1989), ‘Castigating QALYs’, Journal of Medical Ethics, 15(3): 143147.

U.E. Reinhardt (1997), ‘Making economic evaluations respectable’, Social Science and Medicine, 45(4): 555562.

M. Rawlins (1999), ‘In pursuit of quality: the National Institute for Clinical Excellence’, Lancet, 353(9158): 10791082.

M.D. Rawlins (2005), ‘Pharmacopolitics and deliberative democracy’, Clinical Medicine, 5(5): 471475.

J. Ross (1995), ‘The use of economic evaluation in health care: Australian decision makers’ perceptions’, Health Policy, 31(2): 103110.

L.B. Russell , M.R. Gold , J.E. Siegel N. Daniels , and M.C. Weinstein (1996), ‘The role of cost-effectiveness analysis in health and medicine: panel on Cost-Effectiveness in Health and Medicine’, Journal of the American Medical Association, 276(14): 11721177.

S. Saha , T.J. Hoerger , M.P. Pignone S.M. Teutsch M. Helfand , and J.S. Mandelblatt (2001), ‘The art and science of incorporating cost effectiveness into evidence-based recommendations for clinical preventive services’, American Journal of Preventative Medicine, 20(3 Suppl): 3643.

J.E. Siegel (2005), ‘Cost-effectiveness analysis in US healthcare decision-making: where is it going?’, Medical Care, 43(7 Suppl): 14.

Task Force on Principles for Economic Analysis of Health Care Technology (1995), ‘Economic analysis of health care technology: a report on principles’, Annals of Internal Medicine, 123(1): 6170.

S.R. Tunis (2004), ‘Why Medicare has not established criteria for coverage decisions’, New England Journal of Medicine, 350(21): 21962198.

S.R. Tunis (2007), ‘Reflections on science, judgment, and value in evidence-based decision making: a conversation with David Eddy’, Health Affairs, Web Exclusive, 19 June 2007, w500w515.

J.F. Wallace , S.R. Weingarten , C.F. Chiou J.M. Henning , A.A. Hohlbauch M.S. Richards N.S. Herzog , L.S. Lewensztain , and J.J. Ofman (2002), ‘The limited incorporation of economic analyses in clinical practice guidelines’, Journal of General Internal Medicine, 17(3): 210220.

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Health Economics, Policy and Law
  • ISSN: 1744-1331
  • EISSN: 1744-134X
  • URL: /core/journals/health-economics-policy-and-law
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×