The Medicare program has been a notable holdout in the globalmovement toward the use of cost-effectiveness analysis to informhealth care decisions. Unlike the reimbursement authoritiesin Canada and Australia, and in many countries in Europe, Medicareofficials do not formally consider cost-effectiveness when determiningthe coverage of new medical interventions, even as they alsoconfront ever-growing worries about the program's fiscal solvency.1,2
In this article, we discuss the road ahead for cost-effectivenessanalysis in the Medicare program. We examine resistance to itsapplication, opportunities for its use, and ways in which theUnited States might move beyond its . . . [Full Text of this Article]
Resistance
The Medicare Modernization Act
Private Formulary Management
Comparative-Effectiveness Research
Functional Equivalence
Key Questions about Cost-Effectiveness Analysis
Is the Method Sound?
Will It Save Money?
Will It Harm Innovation?
Will Americans Ever Tolerate Explicit Rationing by Medicare?
Getting From Here to There
Involving Stakeholders
Possible Congressional Action
Value-Based Reimbursement
Lessons from Abroad
Does the United States Need a New Institute?
Conclusions
Source Information
From the Department of Health Policy and Management and the Center for Risk Analysis, Harvard School of Public Health, Boston (P.J.N., M.C.W.); and the Division of General Medicine, University of Michigan Health System, and the Center for Practice Management and Outcomes Research, Ann Arbor Veterans Affairs Medical Center both in Ann Arbor, Mich. (A.B.R.).
Related Letters:
Medicare and Cost-Effectiveness Analysis
Schulman K. A., Smolkin M. T., Berger M., Honig P., Spatz I., Neumann P. J., Rosen A. B., Weinstein M. C., Goldman L.
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N Engl J Med 2006;
354:207-209, Jan 12, 2006.
Correspondence
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