Cost Effectiveness Analysis In Health

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QUESTION 1

Cost-effectiveness analysis (CEA) is a seemingly straightforward analytical tool that is used to assess complex public policy decisions, however CEA does not always account for all intangible benefits. Cost-effectiveness is used to help pinpoint neglected opportunities for improving health and then allotting scarce resources to obtain better health outcomes for society. Since Britain’s has limited resources to concentrate on public health issues that have varying outcomes with regards to survival and quality of life. Cost-Utility Analysis (CUA), part of the cost-effectiveness family is an appropriate technique to utilize when making such decisions because it allows different health outcomes to be transformed to a common unit, known as QALYs (quality-adjusted life year). Yet, societal benefits and costs are often not considered for CUA. Additionally, measuring QALYs is harder than measuring the monetary value of life through improvements in health, as is done with cost–benefit analysis. Cost-Benefit Analysis (CBA), also a part of the cost-effectiveness family is used to recognize value in terms of economic efficiency, in that it improves allocation of scarce resources. In addition, some individuals believe that life is invaluable and there are moral problems with assigning a value on human life.
The main limitation for CEA, is the weighting of QALYs through trade-offs and specific health outcomes may also make it hard to quantify, thus making it harder to measure all factors that may influence QALY for an individual. Also, QALY’s lack of usefulness to physicians in determining the proper route of treatment for their patients represents another limitation. Additionally, older individuals are presumed to have a lower QALY...

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...e surface appears to be a good idea however some individuals may argue that this would interfere with individual liberties. The best approach to find out if providing incentives works or if excise taxes works to decrease obesity is to use the cost-effectiveness analysis tool. Researchers will be able to pinpoint which policies are working and which ones are failing because cost-effectiveness is associated with cost-benefit analysis. This means if the benefits outweigh the costs, then policymakers should implement the policy with the most benefit. I believe the optimum approach to addressing the obesity epidemic is to have government incentivize individuals for maintaining a healthy Body Mass Index and to expand evidence-base school interventions. More effort should be focused on education because behaviors are learned not only in the home but also in the classroom.

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