question archive Suppose there are few treatment options as follows for increasing the quality of life with varying costs
Suppose there are few treatment options as follows for increasing the quality of life with varying costs
Subject:EconomicsPrice: Bought3
Suppose there are few treatment options as follows for increasing the quality of life with varying costs.
Yearly costs ($) Effectiveness (QALYs increased)
No Treatment $0 0
Treatment A 1000 0.2
Treatment B 1500 0.24
Treatment C 1500 0.18
Treatment D 2000 0.22
Treatment E 2200 0.27
Answer the following two questions:
(1) What treatment options are in your cost-effectiveness frontier?
(2) Without insurance, what is the optimal treatment option if your highest willingness to pay amount for increasing 1 QALY is $20,000?
