The Impact of Increased Utilization of HIV Drugs on Longevity and Medical Expenditures: An Assessment Based on Aggregate U.S. Time-Series Data
We 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.
|Date of creation:||Aug 2006|
|Date of revision:|
|Publication status:||published as Frank R Lichtenberg, 2006. "The impact of increased utilization of HIV drugs on longevity and medical expenditure: an assessment based on aggregate US time-series data," Expert Review of Pharmacoeconomics & Outcomes Research, vol 6(4), pages 425-436.|
|Note:||HC PR HE|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
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- 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.
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