Creating Your Own Budget-Impact Analyses Today and Tomorrow

  • Josephine Mauskopf
  • Stephanie Earnshaw
  • Anita Brogan
Chapter

Abstract

This chapter summarizes the importance of budget-impact analysis as a tool to assess the impact on population health and payer budgets of new health care interventions. We discuss the complementary nature of budget-impact analysis and cost-effectiveness analysis and provide a reminder about differences in purpose, structure, assumptions, and inputs between these two types of analysis. We also provide a brief overview of this book’s recommendations for budget-impact analysis, both in terms of essential components and calculations as well as strategies to design analyses that are credible and useful to budget holders. Example budget-impact analyses are presented to demonstrate how components have been added to these analyses to make them more credible and useful for the budget holder. Finally, areas are suggested where future development in budget-impact analysis methods is needed.

Keywords

Budget-impact analysis Key components Methods development 

References

  1. Agency for Health Technology Assessment (AHTA). Guidelines for conducting health technology assessment (HTA). Version 2.1. Warsaw: AHTA; 2009.Google Scholar
  2. Cohen JP, Stolk E, Niezen M. Role of budget impact in drug reimbursement decisions. J Health Polit Policy Law. 2008;33:225–47.CrossRefPubMedGoogle Scholar
  3. Faleiros DR, Álvares J, Almeida AM, de Araújo VE, Andrade EI, Godman BB, et al. Budget impact analysis of medicines: updated systematic review and implications. Expert Rev Pharmacoecon Outcomes Res. 2016;16(2):257–66. doi: 10.1586/14737167.2016.1159958.CrossRefPubMedGoogle Scholar
  4. Marshall DA, Douglas PR, Drummond MF, Torrance GW, Macleod S, Manti O, et al. Guidelines for conducting pharmaceutical budget-impact analyses for submission to public drug plans in Canada. Pharmacoeconomics. 2008;26(6):477–95.CrossRefPubMedGoogle Scholar
  5. Mauskopf J. Prevalence-based economic evaluation. Value Health. 1998;1(4):251–9.CrossRefPubMedGoogle Scholar
  6. Mauskopf J. Meeting the NICE requirements: a Markov model approach. Value Health. 2000;3(4):287–93.CrossRefPubMedGoogle Scholar
  7. Mauskopf J. Budget impact analysis. In: Culyer AJ, editor. Encyclopedia of health economics, vol. 1. San Diego: Elsevier; 2014. p. 98–107.CrossRefGoogle Scholar
  8. Mauskopf J, Earnshaw S. A methodological review of US budget-impact models for new drugs. Pharmacoeconomics. 2016;34(11):1111–31.CrossRefPubMedGoogle Scholar
  9. Mauskopf J, Muroff M, Gibson PJ, Grainger DL. Estimating the costs and benefits of new drug therapies: atypical antipsychotic drugs for schizophrenia. Schizophr Bull. 2002;28(4):619–35.CrossRefPubMedGoogle Scholar
  10. Mauskopf JA, Earnshaw S, Mullins CD. Budget impact analysis: review of the state of the art. Expert Rev Pharmacoecon Outcomes Res. 2005;5:65–79.CrossRefPubMedGoogle Scholar
  11. Mauskopf JA, Sullivan SD, Annemans L, Caro J, Mullins CD, Nuijten M, et al. Principles of good practice for budget impact analysis: report of the ISPOR task force on good research practices—budget impact analysis. Value Health. 2007;10(5):336–47.CrossRefPubMedGoogle Scholar
  12. Mauskopf J, Chirila C, Birt J, Boye KS, Bowman L. Drug reimbursement recommendations by the National Institute for Health and Clinical Excellence: have they impacted the National Health Service budget? Health Policy. 2013;110(1):49–59. doi: 10.1016/j.healthpol.2013.01.017.CrossRefPubMedGoogle Scholar
  13. National Institute for Health and Care Excellence (NICE). Guide to the methods of technology appraisal 2013. 2013. http://nice.org.uk/process/pmg9. Accessed 5 Aug 2016.
  14. Neyt M, Cleemput I, Van de Sande S, Thiry N. Belgian guidelines for budget-impact analyses. Acta Clin Belg. 2015;70(3):175–80. doi: 10.1179/2295333714Y.0000000118.CrossRefPubMedGoogle Scholar
  15. Nuijten MJ, Mittendorf T, Persson U. Practical issues in handling data input and uncertainty in a budget impact analysis. Eur J Health Econ. 2011;12(3):231–41. doi: 10.1007/s10198-010-0236-4.CrossRefPubMedGoogle Scholar
  16. Orlewska E, Gulácsi L. Budget-impact analyses: a critical review of published studies. Pharmacoeconomics. 2009;27(10):807–27. doi: 10.2165/11313770-000000000-00000.CrossRefPubMedGoogle Scholar
  17. Patented Medicine Prices Review Board. Budget-impact analysis guidelines: guidelines for conducting pharmaceutical budget-impact analyses for submission to public drug plans in Canada. 2007.Google Scholar
  18. Pharmaceutical Benefits Advisory Committee (PBAC). Guidelines for preparing submissions to the Pharmaceutical Benefits Advisory Committee. Version 4.5. 2015. http://www.pbac.pbs.gov.au/content/information/printable-files/pbacg-book.pdf. Accessed 11 Sept 2015.
  19. Sullivan SD, Mauskopf JA, Augustovski F, Caro JJ, Lee KM, Minchin M, et al. Budget impact analysis—principles of good practice: report of the ISPOR 2012 Budget Impact Analysis Good Practice II Task Force. Value Health. 2014;17(1):5–14. doi: 10.1016/j.jval.2013.08.2291.CrossRefPubMedGoogle Scholar
  20. Trueman P, Drummond M, Hutton J. Developing guidance for budget impact analysis. Pharmacoeconomics. 2001;19(6):609–21.CrossRefPubMedGoogle Scholar
  21. van de Vooren K, Duranti S, Curto A, Garattini L. A critical systematic review of budget impact analyses on drugs in the EU countries. Appl Health Econ Health Policy. 2014;12(1):33–40. doi: 10.1007/s40258-013-0064-7.CrossRefPubMedGoogle Scholar
  22. WellPoint. Health technology assessment guidelines: drug submission guidelines for new products, new indications, and new formulations. 2008. http://www.pharmamedtechbi.com/~/media/Images/Publications/Archive/The Pink Sheet/70/043/00700430001/wellpoint_formulary_guidelines.pdf . Accessed 4 Apr 2016.

Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  • Josephine Mauskopf
    • 1
    • 2
  • Stephanie Earnshaw
    • 1
    • 2
  • Anita Brogan
    • 1
    • 2
  1. 1.RTI Health SolutionsRTI InternationalDurhamUSA
  2. 2.RTI Health SolutionsRTI InternationalManchesterUK

Personalised recommendations