The Impact of Increased Utilization of HIV Drugs on Longevity and Medical Expenditures: An Assessment Based on Aggregate U.S. Time-Series Data
AbstractWe estimate the medical cost per life-year gained from increased utilization of HIV drugs by estimating the impact of increased drug utilization on the life expectancy and drug and hospital expenditure of HIV/AIDS patients, using aggregate (U.S. national-level) data for the period 1982-2001. We use IMS Health data on the aggregate number of and expenditure on HIV drug prescriptions, the CDC%u2019s AIDS Public Information Data Set, and data from AHRQ%u2019s Nationwide Inpatient Sample. Estimates of mortality models imply that actual life expectancy of HIV/AIDS patients in 2001 was 13.4 years higher than it would have been if the drug utilization rate had not increased from its 1993 level. Estimates of a model of hospital discharges imply that increased utilization of HIV drugs caused hospital utilization to decline by .25 to .29 discharges per person per year during the period 1993-2001. Medical cost per additional life-year is estimated to have been $17,175. Treatments that cost this amount are widely considered to be cost-effective. The consistency of this estimate with those from previous studies suggests that analysis of aggregate data may be a useful alternative or additional approach to evaluating the cost-effectiveness of new treatments.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12406.
Date of creation: Aug 2006
Date of revision:
Note: HC PR HE
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- J1 - Labor and Demographic Economics - - Demographic Economics
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Duggan Mark G & Evans William N, 2008.
"Estimating the Impact of Medical Innovation: A Case Study of HIV Antiretroviral Treatments,"
Forum for Health Economics & Policy,
De Gruyter, vol. 11(2), pages 1-39, January.
- Mark G. Duggan & William N. Evans, 2005. "Estimating the Impact of Medical Innovation: A Case Study of HIV Antiretroviral Treatments," NBER Working Papers 11109, National Bureau of Economic Research, Inc.
- Tomas J. Philipson & Anupam B. Jena, 2005.
"Who Benefits from New Medical Technologies? Estimates of Consumer and Producer Surpluses for HIV/AIDS Drugs,"
NBER Working Papers
11810, National Bureau of Economic Research, Inc.
- Philipson Tomas J & Jena Anupam B, 2006. "Who Benefits from New Medical Technologies? Estimates of Consumer and Producer Surpluses for HIV/AIDS Drugs," Forum for Health Economics & Policy, De Gruyter, vol. 9(2), pages 1-33, January.
- Frank R. Lichtenberg, 2008.
"Have Newer Cardiovascular Drugs Reduced Hospitalization? Evidence From Longitudinal Country-Level Data on 20 OECD Countries, 1995-2003,"
NBER Working Papers
14008, National Bureau of Economic Research, Inc.
- Frank R. Lichtenberg, 2009. "Have newer cardiovascular drugs reduced hospitalization? Evidence from longitudinal country-level data on 20 OECD countries, 1995-2003," Health Economics, John Wiley & Sons, Ltd., vol. 18(5), pages 519-534.
- Frank Lichtenberg, 2011.
"The quality of medical care, behavioral risk factors, and longevity growth,"
International Journal of Health Care Finance and Economics,
Springer, vol. 11(1), pages 1-34, March.
- Frank R. Lichtenberg, 2009. "The Quality of Medical Care, Behavioral Risk Factors, and Longevity Growth," NBER Working Papers 15068, National Bureau of Economic Research, Inc.
- Cecilia Navarra, 2013. "Economics of Development NGOs: a survey of existing datasets," Working Papers 1305, University of Namur, Department of Economics.
- Tomas J. Philipson & Anupam B. Jena, 2006.
"Surplus Appropriation from R&D and Health Care Technology Assessment Procedures,"
NBER Working Papers
12016, National Bureau of Economic Research, Inc.
- Tomas J. Philipson & Anupam B. Jena, 2005. "Surplus Appropriation from R&D and Health Care Technology Assessment Procedures," Public Economics 0511021, EconWPA.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.