1. What is cost effectiveness analysis(CEA)?
2. The following information has been gathered on the costs and effectiveness of the two treatments, A and B. In this problem, costs and consequences are not discounted.
Treatment A
Treatment B
Mortality rate
2%
5%
Life expectancy for survivors
20 years
10 years
Initial treatment cost
$10,000
$3,000
Follow up costs, year 1
$5,000
$1,000
Annual follow up costs, all subsequent years
$1,000
$500
What is the total cost for the survivors receiving treatment A? For decedents (assuming sudden death)?
What is the total cost for survivors receiving treatment B? For decedents?
What is the expected cost for those patients receiving treatment A?
Treatment B?