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Cost Effectiveness Analysis (CEA) in U. S. Health Care | American Health Council

Cost Effectiveness Analysis (CEA) in U. S. Health Care—Long Overdue

Cost Effectiveness Analysis (CEA) in U. S. Health Care - Health Council

“Cost effectiveness analysis (CEA), as applied to health care, attempts to estimate the value of expenditures on procedures or treatments that is returned to patients, such as longer life, better quality of life, or both. Given that the U. S. has the most expensive health care in the world, with comparatively low value and outcomes compared to many other advanced countries, you would think that CEA would be a major part of health policy in this country. Sadly, the opposite is true, and it is notably absent from the way we do things.”

“The Affordable Care Act (ACA) postured toward the need for comparative research on health care services by establishing the Patient-Centered Outcomes Research Institute (PCORI). It was intended to pursue clinical effectiveness research (not cost-effectiveness), but it was hobbled from the start by specific bans in the legislation on any authority to dictate coverage or reimbursement policies. A recent study found that it has had minimal impact, with only one-third of its funding going to clinical effectiveness research. (3) It will also disappear in 2019 unless reauthorized by Congress.

Read the full article: Cost Effectiveness Analysis (CEA) in U. S. Health Care—Long Overdue