Cost-effectiveness threshold
From the Health Economics Glossary
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The value of the Cost-effectiveness threshold is a political or strategic defined value of the maximal costs of gaining a QALY or LYG. The height of the threshold value stipulates if the outcome of the CEA is cost-effective i.e. if the cost-effectiveness ratio is under this threshold. The threshold value is also referred to as the willingness-to-pay per QALY or LYG. The value of the treshold varies per country. For example the threshold value is set at €20,000 per LYG in the Netherlands. The national institute of clinical excellence (NICE) uses a value of £30,000 per LYG for the United Kingdom. A value of $50,000 per LYG is generally used for the United States.The height of the threshold value is of great influence on decisions in the reimbursement process and intervention policy. The World Health Organisation defines the threshold value as three times the gross domestic product (GDP).
References
Rapport Zinnige en duurzame zorg, RVZ, 2006 (Dutch) Available online
Devlin N, Parkin D. Does NICE have a cost-effectiveness threshold and what other factors influence its decisions? A binary choice analysis. Health Econ. 2004 May;13(5):437-52. PubMed
Zwart-van Rijkom JE, Leufkens HG, Busschbach JJ, Broekmans AW, Rutten FF. Differences in attitudes, knowledge and use of economic evaluations in decision-making in The Netherlands. The Dutch results from the EUROMET Project. Pharmacoeconomics. 2000 Aug;18(2):149-60. PubMed
