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Incorporating Future Costs in Medical Cost-Effectiveness Analysis

Author

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  • Magnus Johannesson
  • David Meltzer
  • Richard M. O'Conor

Abstract

It has been shown that the difference between consumption and production during life years gained should be included as a cost in cost-effectiveness analysis. In this study the authors estimate the impact of including these future costs on the cost-effective ness of the treatment of hypertension in Sweden. The cost per quality-adjusted life year (QALY) gained changes little among young men and women due to the addition of future costs, but increases by about $14,000 for middle-aged men and women and about $27,000 for older men and women. When future costs are not included, the cost per QALY gained is generally lowest among older men and women, but when future costs are included, the cost per QALY gained is generally lowest among middle-aged men and women. The authors conclude that the total resource consequences of changes in mortality should be routinely considered in cost-effectiveness analyses. Key words: Cost-effectiveness analysis; economic evaluation; costs; societal per spective. (Med Decis Making 1997;17:382-389)

Suggested Citation

  • Magnus Johannesson & David Meltzer & Richard M. O'Conor, 1997. "Incorporating Future Costs in Medical Cost-Effectiveness Analysis," Medical Decision Making, , vol. 17(4), pages 382-389, October.
    • Handle: RePEc:sae:medema:v:17:y:1997:i:4:p:382-389
    DOI: 10.1177/0272989X9701700403
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    References listed on IDEAS

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    1. Meltzer, David, 1997. "Accounting for future costs in medical cost-effectiveness analysis," Journal of Health Economics, Elsevier, vol. 16(1), pages 33-64, February.
    2. David Meltzer, 1997. "Accounting for Future Costs in Medical Cost-Effectiveness Analysis," NBER Working Papers 5946, National Bureau of Economic Research, Inc.
    3. Johansson,Per-Olov, 1991. "An Introduction to Modern Welfare Economics," Cambridge Books, Cambridge University Press, number 9780521356954.
    4. Brooks, Richard G. & Jendteg, Stefan & Lindgren, Bjorn & Persson, Ulf & Bjork, Stefan, 1991. "EuroQol(c): health-related quality of life measurement. Results of the Swedish questionnaire exercise," Health Policy, Elsevier, vol. 18(1), pages 37-48, June.
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    3. Jönsson, Linus & Borgström, Fredrik & Zethraeus, Niklas, 2002. "Cost-Effectiveness of Alendronate in the Treatment of Osteoporosis in Denmark - An Economic Evaluation Based on the Fracture Intervention Trial," SSE/EFI Working Paper Series in Economics and Finance 501, Stockholm School of Economics.
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    5. Gandjour, Afschin & Lauterbach, Karl Wilhelm, 2005. "Does prevention save costs?: Considering deferral of the expensive last year of life," Journal of Health Economics, Elsevier, vol. 24(4), pages 715-724, July.
    6. Braden Manns & David Meltzer & Ken Taub & Cam Donaldson, 2003. "Illustrating the impact of including future costs in economic evaluations: an application to end‐stage renal disease care," Health Economics, John Wiley & Sons, Ltd., vol. 12(11), pages 949-958, November.
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    9. David Meltzer, 1997. "Accounting for Future Costs in Medical Cost-Effectiveness Analysis," NBER Working Papers 5946, National Bureau of Economic Research, Inc.
    10. Zethraeus, Niklas & Johansson, Per-Olov, 1997. "Willingness to Pay for Hormone Replacement Therapy," SSE/EFI Working Paper Series in Economics and Finance 214, Stockholm School of Economics.
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