Presentation: A New Pharmaceutical: Is it Worth the Money? Whose Money?


Presentation

Session: Applying Technology Assessment
Room: Elissa Hall
Time: Thu 11:45-13:00

Presenter: Peter Zweifel (University of Zurich. Economics)

Abstract

This study seeks to provide evidence for deciding whether or not a new pharmaceutical should be included in the benefit list of social health insurance. A discrete choice experiment (DCE) was conducted in Germany to measure preferences for modern insulin therapy. Of the 1,100 individuals interviewed in 2007, 200 suffered from type 1 diabetes, 150 from insulin-treated type 2 diabetes, and 150 from insulin-naive type 2 diabetes, allowing to compare preferences among different subgroups. The long-acting insulin analogue 'Insulin Detemir' is compared to human insulin as the status quo. The DCE contains two price attributes, copayment and an increased contribution to health insurance. As one would expect, non-affected non-diabetics and insulin-naive diabetics exhibit higher willingness-to-pay (WTP) values through copayment (adjusted for probability of contracting diabetes), while affected type 1 and insulin-treated type 2 diabetics have higher WTP through increased contributions. However, WTP values exceed the extra treatment cost in both financing alternatives, justifying inclusion of the new drug in the benefit list from a cost-benefit point of view.

Key Terms
Health insurance, Discrete Choice Experiment, preferences, diabetes

Authors:

Michèle Sennhauser (U. of Zurich. Economics) and Peter Zweifel (U. of Zurich. Economics)

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