Cost-Effectiveness and “Value” in the US

Ankur Pandya Speaking to Colleague.

CHDS faculty member Ankur Pandya presented his research on the policy options for lipid-lowering drugs at the Health Policy and Management Research Seminar on March 12th. Panda uses modeling to compare the cost-effectiveness of widely used statins – which are available as generics at very low cost – with the new biological PCSK9, which has a cost of nearly $15,000/year – across different trajectories of use. He considers the benefit of using low-value care now, meaning economically cost-ineffective drugs, to reap future benefit from when they lose patent protection and become economically cost-effective. In this example, Pandya found that the high-cost biological – PCSK9 – would become cost-effective in the future if there were larger-than-expected price reductions.

Dr. Pandya is an Assistant Professor of Health Decision Science in the Department of Health Policy and Management at the Harvard Chan School of Public Health. His research aims to connect cost-effectiveness analysis with “value”-based policies being piloted or implemented the US, with a clinical focus on heart disease and stroke.

Learn more: Pandya A, Joseph A, Zhu J, Sy S, Weinstein MC, Gaziano T. 2F-3: Should We Accept Low-Value Care Now for High-Value Care Later? Modeling Lipid-Lowering Agents in the United States. Society for Medical Decision Making 2017.
Learn more: Explore the cost-effectiveness analysis page on the CHDS website.
Learn more: Attend an event or activity for students at HPM.

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