Answered: Given this information what price…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

After reviewing Institute for Clinical and Economic Review consider the following:

In the UK, very few drugs or procedures are approved if they cost more than $50,000 per QALY. Take the example of PCSK9 inhibitors. The PCSK9 inhibitors(PSK9i) are a class of injectable drugs approved in 2015 that have been shown to dramatically lower LDL cholesterol levels, by up to 60% when combined with a statin. The market price of the first PCSK9s to be sold in the US in 2015 was $14,350 per year. The ICER analysis shows how many more patients could be treated at a lower total budget impact if the price could be lowered.

Given this information what price should Medicare pay for a PSCK9?
Should a state Medicaid program pay more or less?
Should Medicaid programs in low-income states pay more, less, or the same, compared to high-income states?
Should there be one $/QALY for an entire country?
How would you expect drug companies to react to price limits set by public programs?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions