What is the ICER threshold?

Health technology assessment (HTA) bodies in many countries have set an ICER threshold, above which an intervention is considered to be not cost-effective, in order to aid their respective processes of decision-making.

What is ICER in CEA?

The incremental cost-effectiveness ratio (ICER), which represents the additional cost of one unit of outcome gained by one strategy compared with another, has become a popular methodology in CEA.

What does ICER per QALY mean?

BOSTON, December 12, 2018 – The Institute for Clinical and Economic Review (ICER) has posted a summary of the reasons that the quality-adjusted life year (QALY) is the gold standard for measuring how well a medical treatment improves patients’ lives, and has served as a cornerstone of cost-effectiveness analysis in the …

How do you interpret an ICER?

An ICER is calculated by dividing the difference in total costs (incremental cost) by the difference in the chosen measure of health outcome or effect (incremental effect) to provide a ratio of ‘extra cost per extra unit of health effect’ – for the more expensive therapy vs the alternative.

What is the ICER threshold in the UK?

Currently, a QALY weight of up to 1.7 can be applied bringing the ICER threshold to £50,0004. Recently, in NICE’s methods review (read more about it here) the introduction of a severity modifier was proposed, which is due to come into effect in January 2022 replacing the end-of-life modifier5.

What does a high ICER mean?

Use as a decision rule If for a given intervention the ICER is above this threshold it will be deemed too expensive and thus should not be funded, whereas if the ICER lies below the threshold the intervention can be judged cost-effective.

What does a negative ICER mean?

• There are two instances when the ICER could be negative: 1) the new intervention is more costly. and less effective (Comparator is superior reject new intervention); 2) the new intervention is less. costly and more effective (New intervention is superior adopt new intervention).

What happens if ICER is negative?

ICERs with a negative value are in the south-east (SE) or the north-west (NW) quadrant. These two quadrants are relatively easy to interpret. In the SE quadrant the new treatment is more effec- tive and saves money compared with the old treatment.

Is a high or low ICER better?

A strategy with a negative ICER is cost effective if it lies in the south-east quadrant, but not if it lies in the north-west quadrant. In evaluations of three or more strategies, the decision rule is unintuitive: the most cost-effective strategy is that with the highest ICER that lies below the threshold.

What does negative ICER mean?

What does ICER value mean?

incremental cost-effectiveness ratio
The incremental cost-effectiveness ratio (ICER) is a statistic used in cost-effectiveness analysis to summarise the cost-effectiveness of a health care intervention. It is defined by the difference in cost between two possible interventions, divided by the difference in their effect.