HAC Cost-Effectiveness Analysis 3

Question 1

Net Monetary Benefit (NMB) is calculated as:

Accepted Answer

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

Answer

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

Question 2

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

Accepted Answer

More costly and less effective than the comparator

Answer

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

Question 3

Extended dominance occurs when an intervention is ruled out because:

Accepted Answer

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

Answer

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

Question 4

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

Accepted Answer

3% for both costs and health outcomes

Answer

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

Question 5

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

Accepted Answer

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

Answer

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

(HAC) Healthcare Analytics Certification Practice Test