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Lifetime cost of unilateral cochlear implants in adults: a Monte Carlo simulation

Author

Listed:
  • Christin Thum

    (University of Greifswald)

  • Thomas Lenarz

    (Hannover Medical School)

  • Anke Lesinski-Schiedat

    (Hannover Medical School)

  • Steffen Fleßa

    (University of Greifswald)

Abstract

Backround/Objective Due to increasing prevalence of hearing loss and relaxation of candidacy criteria of cochlear implant (CI) supply, the number of implantations is likely to further increase. Statutory health insurances are facing ever more urgent financing challenges since CI treatment causes high life-long costs. Additionally, increasing life expectancy and earlier implantation may extend therapy time and cost. With every case being individual, this study aims to calculate the possible lifetime cost of unilateral CI treatment in adults including stochastic uncertainties. Methods Taking a statutory health insurance perspective, relevant cost components of CI therapy and their values were identified. The Monte Carlo method was used to simulate lifetime cost considering age at first implantation and distributions of costrelevant variables. A sensitivity analysis was conducted to determine the most crucial variables impacting on lifetime cost. Results Lifetime cost of CI treatment varies according to age at first implantation, respectively remaining lifetime; the earlier the implantation, the higher the overall cost. According to our simulation, the average lifetime cost for an adult patient first implanted between the age of 20–80 is at 53,030 € (present value). Cost of implantation and periodic speech processor exchanges show the highest impact on the total cost. Discussion Health care systems could face rising expenses for CI supply by technical development. Innovative life-long CIs could achieve significant savings per case that could finance additional implant cost. Until then, further targeted research will be required. Conclusion CI-related cost for statutory health insurance crucially depends on the patient-side demand for cochlear implants. Therefore, cost forecasts must also consider the development of demand.

Suggested Citation

  • Christin Thum & Thomas Lenarz & Anke Lesinski-Schiedat & Steffen Fleßa, 2020. "Lifetime cost of unilateral cochlear implants in adults: a Monte Carlo simulation," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(6), pages 963-975, August.
  • Handle: RePEc:spr:eujhec:v:21:y:2020:i:6:d:10.1007_s10198-020-01188-7
    DOI: 10.1007/s10198-020-01188-7
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    References listed on IDEAS

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    1. Laurent Molinier & Hélène Bocquet & Vanina Bongard & Bernard Fraysse, 2009. "The economics of cochlear implant management in France: a multicentre analysis," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 10(3), pages 347-355, July.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Chris Sampson’s journal round-up for 3rd August 2020
      by Chris Sampson in The Academic Health Economists' Blog on 2020-08-03 11:00:00

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      More about this item

      Keywords

      Cochlear implantation; Cochlear implant; Lifetime cost; Monte Carlo simulation;
      All these keywords.

      JEL classification:

      • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
      • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
      • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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