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?
Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
Problem 10QAP
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- 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?
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