Value Proposition: The Role of Cost-Effectiveness in Coverage Decisions

Value Proposition: The Role of Cost-Effectiveness in Coverage Decisions

A recent issue brief from the California HealthCare Foundation examines public and industry attitudes toward using cost-effectiveness analysis when deciding what services should be covered in public and private health plans. Although the conventional wisdom holds that Americans will not accept cost factors in coverage decisions, three studies examined in the brief, Value Proposition: The Role of Cost-Effectiveness in Coverage Decisions (7 pages, PDF), suggest that may no longer be true. The brief concludes that Medicare is well-placed to set the course for bringing cost and cost-effectiveness into the coverage equation in ways that reflect the public's values.