03 Jun Question Question 1: (Max. 350 words) (4%)
Question
Question 1: (Max. 350 words) (4%)
The British government conducted cost-effectiveness of drugs and made the decision if
one certain drug should be covered by their government healthcare system based on these cost-effectiveness analyses (CEA). In 2005, the British government decided not to cover Alzheimer’s drugs by government healthcare system because the “cost per QALY” of these drugs was too high.
This decision made the use of CEA for policy-making a controversial issue. Please read the attached article “Valued Lives: Britain Stirs Outcry by Weighing Benefits of Drugs Versus Price; Government Arm Finds Pills For Alzheimer’s Too Costly, Angering Patients, Pfizer; Ms. Dennis, 80, Joins Protest” by Jeanne Whalen in The Wall Street Journal on November 22nd, 2005, and determine if you agree with how the British government used CEA in this case or not.
You may start from the following perspectives:
• The appropriateness of using CEA for policy decision
• The accuracy of CEA
• The limitations of CEA
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