the panel on cost-effectiveness in health and medicine marthe gold city university of london 30...
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![Page 1: The Panel on Cost-Effectiveness in Health and Medicine Marthe Gold City University of London 30 October, 2003](https://reader036.vdocuments.mx/reader036/viewer/2022062715/56649d6d5503460f94a4d3fe/html5/thumbnails/1.jpg)
The Panel on Cost-Effectiveness in Health and Medicine
Marthe Gold
City University of London
30 October, 2003
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U.S. Department of Health and Human Services
ACFHealth CareFinancing Administration
IHSFDAHRSASAMHSAAHRQ
NCHS
CDCNIH
Public Health Service
ASPE
Health and Human Services
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Context:Federal Initiatives
Office of Technology Assessment (Congress)– Cost-effectiveness analyses of preventive services
Health Care Financing Administration– Oregon Medicaid Waiver – Coverage decision regs
Agency for Health Care Policy and Research– Guidelines– Technology assessments
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Context:Federal Initiatives
National Institutes of Health– Clinical trials
Centers for Disease Control and Prevention– CEAs of preventive strategies – State requests for local decision making
Food and Drug Administration– Regulatory review of drug marketing claims
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Disarray in the Field…..
Cost-effectiveness methods incomplete/non standardized. Udvarhelyi S, et al, 1992
Breast cancer screening ratios range from cost saving to $84k/YLS. Brown ML and L Fintor, 1993
Oregon’s priority list a failure due to technical problems in CEA. Eddy, D. 1991
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Source of Problems
Flaws in methods– Perspective not identified – Inappropriate choice of comparator – Inadequate or non-generalizable cost/effectiveness
data – No “discounting” – Uncertainty unaccounted for
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Source of Problems
Differences in investigator approach– Perspective differs– Non-comparable outcome measures– Differences in how future costs of health care
unrelated to the intervention are handled
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The Panel On Cost-Effectiveness in Health and Medicine: Charge
Assess the current practice of CEA
Provide recommendations to improve quality, comparability and utility of studies in the service of decision making
Identify unresolved methodological issues
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PCEHM:Reference Case Analysis
“Base case” analysis for analyses designed to inform resource allocation decisions
Defined by a standard set of methods and assumptions
Recommendations for methods drawn from consistent and theoretically grounded series of considerations
A CEA may be valid without following RC methodology.
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Recommendation Rationales
Theoretical– theoretical considerations drawn from welfare
economics and expected utility theory
Ethical– ethical considerations justifying deviation from
strictly interpreted welfare economic theory
Accounting consistency– logical consistency/avoidance of double counts
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Recommendation Rationales
Pragmatic– best empirical evidence and consideration of the
practical limitations of current techniques
Conventional– conformance to, or establishment of, a convention
to produce standardized procedure
User needs– responds to particular needs of decision makers
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PCEHM Recommendation: Perspective
The Reference Case should be based on the societal perspective – Everything counts - (costs and benefits)– “The public interest” viewed ex ante – Provides a benchmark against which to assess
results from other perspectives
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PCEHM Recommendations:Outcomes
Morbidity and mortality consequences incorporated into a single measure using QALYs
Preferences (values) should be drawn from a representative sample of the community – Consistent with the societal perspective
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-
50,000
100,000
150,000
200,000
250,000
300,000
Stroke Diabetes COPD PUD Asthma
YHL
QWB
DALY
HALYs for 5 Conditions using HALex, QWB, and DALY weights
Gold MR and P Muennig. Med Care, 2002
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PCEHM Recommendations: Costs
Costs reflected in the numerator should include: health care services; time patients expend receiving care; care giving; other related associated with the illness; non-health impacts of the intervention
Include or exclude costs associated with diseases other than those affected in added years of life
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PCEHM Recommendations: Comparators
The reference case should compare the health intervention of interest to existing practice (status quo)
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Cost-effectiveness in decision making for resource allocation
CEA not an “answer” to a resource allocation decision
Other values must enter in, including:– Fairness in distribution of resources, priority to
disadvantaged (e.g., sick, poor, aged)
These values can not easily be embedded in the CEA methodology
Decisions must represent the convergence of many views
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Seven years pass….What’s new?
In the medical literature, evidence that quality of CEA studies has improved
AHRQ and CDC include information about CE in their assessments of community-based and clinical preventive services
No impact on Congressional decision-making No (explicit) change in the policies of CMS
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On the horizon….Office of Management and Budget
“BCA is an evolving discipline, but one which the administration believes provides important insight into the design of smart regulations……OMB’s final guidance will also promote CEA…it’s advantage is it does not require analysts to determine the monetary cost of life-saving: it reserves that judgment for accountable policy officials.”
(Federal Register, March 2003)
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On the horizon….?Centers for Medicare and Medicaid
Huge growth in program costs Huge budget deficit Addition of pharmaceutical benefits How will the U.S. pay for this?
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Health Care Spending per CapitaAdjusted for Cost-of-Living Differences, 2001
$4,887
$2,808 $2,792 $2,626$2,350
$2,561
$1,984 $2,191 $1,992$1,710
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
United
Sta
tes
Ger
man
y
Canad
a
Nethe
rland
s
Austra
lia*
Franc
e
Japa
n*
OECD M
edian
United
King
dom
New Z
ealan
d
•2000 OECD estimateOECD Data
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U.S. Health Expenditures, 1965-2000Trillions of Dollars
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
Source: National Expenditure Accounts