Practice Test Geeks(HAC) Healthcare Analytics Certification Practice Test
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Cost-Effectiveness Analysis Flashcards

7 cards from real HAC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Cost-Effectiveness Analysis flashcards as text

  1. Net Monetary Benefit (NMB) is calculated as:

    Answer: (Willingness-to-pay threshold × incremental QALYs) − incremental costs

    NMB converts health outcomes to monetary units using the WTP threshold and subtracts incremental costs; positive NMB indicates cost-effectiveness.

  2. A 'dominated' intervention in CEA is one that is:

    Answer: More costly and less effective than the comparator

    A dominated intervention costs more and produces worse health outcomes than its comparator, making it irrational to choose.

  3. Extended dominance occurs when an intervention is ruled out because:

    Answer: A combination of two other interventions produces better outcomes at lower cost

    Extended dominance eliminates an option whose ICER is higher than that of a more effective alternative, making a linear combination preferable.

  4. In healthcare CEA, the standard discount rate recommended by the US Panel on Cost-Effectiveness is:

    Answer: 3% for both costs and health outcomes

    The 2nd US Panel on Cost-Effectiveness in Health and Medicine recommends a 3% annual discount rate for both costs and health outcomes.

  5. What is the primary advantage of using QALYs over life-years gained as an outcome measure in CEA?

    Answer: QALYs incorporate both length and quality of life, enabling cross-disease comparisons

    QALYs combine survival duration with health-related quality of life, allowing comparison of interventions across different disease areas.

  6. Which instrument is commonly used to derive EQ-5D utility values for QALY calculation?

    Answer: EQ-5D questionnaire with population-based value set

    The EQ-5D is a standardized instrument whose dimension scores are mapped to utility values using population preference-based value sets.

  7. Time trade-off (TTO) is a method used to:

    Answer: Elicit health state utility values by asking individuals how much life they would trade for perfect health

    TTO elicits utility values by asking respondents to choose between living in a health state for a defined period versus fewer years in perfect health.