What Are the Differences Between a Cost-Effectiveness Analysis and a Cost-Benefit

question 18

Multiple Choice

What are the differences between a cost-effectiveness analysis and a cost-benefit analysis?

• A)Cost-effective analysis is prospective, and cost-benefit analysis is retrospective.
• B)Cost-effectiveness analysis in outcomes research focuses on health outcomes, whereas cost-benefit analysis may or may not focus on health outcomes.
• C)Cost-benefit analysis addresses cost as the opposite of benefit, whereas cost-effectiveness analysis treats cost as a limited resource.
• D)Cost-benefit analysis does not consider anything except financial cost, whereas cost-effectiveness analysis considers intangible costs as well.
• E)Cost-effectiveness analysis always considers financial cost as one of its variables, whereas cost-benefit analysis may or may not do so.

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Definitions:

Insurance Co-pays

Insurance co-pays are fixed amounts that a policyholder must pay out-of-pocket for a covered healthcare service, with the insurance company covering the remaining costs.

Deductibles

The amount paid out of pocket by the policyholder before an insurance policy begins to cover expenses.

Consumer Surplus

The difference between the maximum price a consumer is (or consumers are) willing to pay for an additional unit of a product and its market price; the triangular area below the demand curve and above the market price.

Willing To Pay

The maximum amount an individual is prepared to spend to purchase a good or service or to avoid something undesirable.