Health Economics and Net Costs Essay

Submitted By janiceeva

Words: 393

Pages: 2

Open Document

Compute the cost effectiveness of this program at a discount rate of 6%. Do you recommend implementation?
1) Define the program
Government is considering implementation of an anti-malaria program
- target 1,000 patients who currently have malaria, will be given a new medication for three years, which would maintain them free of malaria while they were taking it.
We assume no the alternative is: better than the government health system spending $50 per person per year to malaria with an older medication since those patients remain quite impaired about half as health as a person with no malaria.
Each medication costs $100 per person per year
- Will entirely recover their health
- 50 patients will experiece side effets which cost $400 per person to treat and lose 0.1 healthy-years in the first year and then responds to the medication and is malaria-free for the remaining years
2. Calculate net costs
Calculate gross costs
--Cost of vaccinations = 100,000
--Cost of treating reactions = 20,000
Gross costs = 120,000
Savings from not treating anti-malaria = $50,000
Net Costs = Gross Costs - Savings = $170,000
Calculate monetary savings due to the program
Net costs = gross costs– savings
Discount future flows to present value (recommended discount rate: 3% or 5%)
2) Calculate net health effects
Possible effects include:
Additional years in full health
Additional years with illness
Health improvement (without prolonging life)
Negative effects (inconvenience, side effects)
The estimation of effects can be based on previous studies, expert judgment, etc.
Sometimes studies combine mortality and other health effects into a single measure
E.g. disability-adjusted life years (DALYs)
3) Apply decision rules
Net health

Impact Of Climate Change

article: Economic impacts of climate change Aggregating impacts adds up the total impact of climate change across sectors and/or regions.[126] Examples of aggregate measures include economic cost (e.g., changes in gross domestic product (GDP) and the social cost of carbon), changes in ecosystems (e.g., changes over land area from one type of vegetation to another),[127] human health impacts, and the number of people affected by climate change.[128] Aggregate measures such as economic cost require…

Words 427 - Pages 2

How Will The Affordable Care Act Affect Jobs?

Immediate Health Policy Issues March 2011 John Holahan and Bowen Garrett Introduction Opponents of health reform have made strong claims about the effect of the Affordable Care Act (ACA) on jobs. Supporters of legislation to repeal the ACA, the so-called “Repealing the Job Destroying Health Care Law Act,” argue that the law will increase unemployment in an already fragile economy.1 The argument is that the requirement to provide health insurance or improve benefits will increase the costs of labor…

Words 4246 - Pages 17

Essay on ACC 410 Public Univ. Analysis

The ratio of unfunded actuarial accrued liability was 47.7% to the $1,041,413,000 covered payroll (Office of Finance, 2013). As of the October 1, 2012 actuarial valuation date, the entry age actuarial cost method was used. The actuarial assumptions included an 8% rate of investment return net of administrative expenses and 4.5% to 5.3% projected salary increases per year. Post-retirement benefits increases were not included in the assumptions. Actuarial value of assets was determined using techniques…

Words 959 - Pages 4

Essay On Aetna Insurance

into the field of health insurance; in fact they were one of the first stock insurance companies to enter the health insurance business. Mark T. Bertolini who serves as Aetna’s president was named president of the company in 2007 is very active with the entire organization. Aetna is known as one of the largest health care companies in the United States with over 38,600 employees and an average amount of 22 million members. They offer many traditional and consumer-directed health insurance products…

Words 1881 - Pages 8

Homelessness In California

In our society, homelessness is still a common and frequent problem that has many causes, including unstable employment opportunities and mental health issues. Whether it is hidden under freeway overpasses or clearly visible on busy city streets, despite its extensive presence, it rarely makes an appearance in public conversation. Given the growing number of impacted people, it is critical to investigate the underlying reasons and push toward effective options. It's especially important to spread…

Words 694 - Pages 3

Essay on Health Economics

Reaction Paper Darrell J. Gaskin is an internationally known expert in health care disparities, access to health care for vulnerable populations and safety net hospitals. He is the deputy director of the Johns Hopkins Center for Health Disparities Solutions and associate professor of Health Economics at the Johns Hopkins Bloomberg School of Public Health. He is the vice chairman of the Maryland Health Benefit Exchange Board. Mr. Gaskin aims to explain how the market place works. How different market…

Words 379 - Pages 2

Nceu Case Study

the recommended solutions with net an increase in 10% more members. This equates to 60 more…

Words 511 - Pages 3

General Accounting Principles Essay

Management Joseph Rudd January 19, 2015 Introduction Many health care organizations today are facing challenges on how to manage and operate financial information. Some of the generally accepted accounting principles used in the past may not as effective to tackle the current issues in dealing with the dramatic changes in health care competition, government regulation, and reimbursement. In order to survive economically, health care organizations must need to look back on every single accounting…

Words 873 - Pages 4

Nt1310 Unit 2 Assignment

implement economic measures in the food industry, the effect of these subsidies and taxes is not well researched. Therefore, the team along with their funding from the New Zealand health ministry measured the impact of these measures and the impact it has had on the market for these goods. Ultimately, they found that a 20% subsidy on fruit and vegetables was able to reduce the net prices of these goods by around 3.4%. This journal presents how a fruit and vegetable subsidy could help reduce the cost of…

Words 2784 - Pages 12

Malaria Research Paper

large medical costs. Malaria is a life-threatening disease caused by parasites that are transmitted to people through the bites of infected mosquitoes. Those affected by the disease can experience fever, chills, and other flu-like symptoms. The disease can cause serious health problems and death if not treated and monitored. Malaria is a deadly disease; however, it is a preventable and treatable disease if adequate care is available. In my paper, I want to into…

Words 1522 - Pages 7