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The European Journal of Health Economics

, Volume 19, Issue 6, pp 807–820 | Cite as

Measuring the end-of-life premium in cancer using individual ex ante willingness to pay

  • S. OlofssonEmail author
  • U.-G. Gerdtham
  • L. Hultkrantz
  • U. Persson
Original Paper

Abstract

For the assessment of value of new therapies in healthcare, Health Technology Assessment (HTA) agencies often review the cost per quality-adjusted life-year (QALY) gained. Some HTA agencies accept a higher cost per QALY gained when treatment is aimed at prolonging survival for patients with a short expected remaining lifetime, a so-called end-of-life (EoL) premium. The objective of this study is to elicit the existence and size of an EoL premium in cancer. Data was collected from 509 individuals in the Swedish general population 20–80 years old using a web-based questionnaire. Preferences were elicited using subjective risk estimation and the contingent valuation (CV) method. A split-sample design was applied to test for order bias. The mean value of a QALY was MSEK4.8 (€528,000), and there was an EoL premium of 4–10% at 6 months of expected remaining lifetime. Using subjective risk resulted in more robust and valid estimates of the value of a QALY. Order of scenarios did not have a significant impact on the WTP and the result showed scale sensitivity. Our result provides some support for the use of an EoL premium based on individual preferences when expected remaining lifetime is short and below 24 months. Furthermore, we find support for a value of a QALY that is above the current threshold of several HTA agencies.

Keywords

Willingness to pay End of life Value of a QALY Cancer Individual preferences Contingent valuation 

JEL Classification

D61 D8 I18 J17 

Notes

Compliance with ethical standards

Funding

Janssen Pharmaceutica NV funded the project through an unrestricted Grant to IHE.

Conflict of interest

The authors declare that they have no conflicts of interest.

Ethics

The study is a survey of the general population. No ethical approval was applied for since participants could not be identified and the study did not involve collection of sensitive information.

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Copyright information

© Springer-Verlag GmbH Germany 2017

Authors and Affiliations

  1. 1.The Swedish Institute for Health Economics (IHE)LundSweden
  2. 2.Health Economics Unit, Department of Clinical Sciences, MalmöLund UniversityLundSweden
  3. 3.School of Economics and Management, Institute of Economic ResearchLund UniversityLundSweden
  4. 4.Department of Economics, School of Economics and ManagementLund UniversityLundSweden
  5. 5.School of BusinessÖrebro UniversityÖrebroSweden

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