Assume a patient has a particular disease. The quality weight (q) associated with the disease is 0.5, meaning the patient has 0.5 quality-adjusted life year (QALY) from living one year with the disease. The patient with such a disease can only live for 10 years (without treatment). Now a drug has been developed to treat this disease. With the drug, the quality of life (q) can be improved to 0.8 and patients can live for 15 years. (1) Calculate the QALYs gained due to the treatment (relative to no treatment). Assume no discounting of future years. Please show all your calculations (points will be deduced if the answer contains only one number without steps). (2) If the drug costs $49,000, what is the incremental cost-effectiveness ratio of the treatment compared with no treatment? Please show all your calculations (points will be deduced if the answer contains only one number without steps). (3) Assume it is agreed that a QALY is worth $5000 (the patient is willing to pay up to $5000 per QALY gained). Will this patient decide to get the drug? Please explain your answers (points will be deduced if the answer contains only a Yes or No).
Assume a patient has a particular disease. The quality weight (q) associated with the disease is 0.5, meaning the patient has 0.5 quality-adjusted life year (QALY) from living one year with the disease. The patient with such a disease can only live for 10 years (without treatment). Now a drug has been developed to treat this disease. With the drug, the quality of life (q) can be improved to 0.8 and patients can live for 15 years.
(1) Calculate the QALYs gained due to the treatment (relative to no treatment). Assume no discounting of future years. Please show all your calculations (points will be deduced if the answer contains only one number without steps).
(2) If the drug costs $49,000, what is the incremental cost-effectiveness ratio of the treatment compared with no treatment? Please show all your calculations (points will be deduced if the answer contains only one number without steps).
(3) Assume it is agreed that a QALY is worth $5000 (the patient is willing to pay up to $5000 per QALY gained). Will this patient decide to get the drug? Please explain your answers (points will be deduced if the answer contains only a Yes or No).
(4) If the patient has an insurance which pays (with 20% coinsurance) for the drug. Will the patient decide to get the drug? Please explain your answers (points will be deduced if the answer contains only a Yes or No)
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