Generalized Cost-Effectiveness Analysis (GCEA)

Right now, many health economists rely on a narrow methodology to determine a drug's "cost-effectiveness" (CEA) that excludes many components of a drug's individual and societal value. Essentially, they want to know if a drug is "worth it" at its price but are failing to ask the right questions. Insurers often use this bad math to deny access or charge high co-pays to patients for life-saving treatments prescribed to them by their physician.
In contrast, generalized cost-effectiveness analysis (GCEA) asks a broader set of questions:
  • What will be the impact of this drug going generic?
  • Will this drug ease the burden on caregivers?
  • Will this treatment keep you out of the hospital and able to work and take care of family?
  • And more.
NPLB has begun to fund a number of studies that seek to answer these questions and preserve patient access to lifesaving medicines. You can read some of our early findings and work below:

When simpler isn’t better: A case for generalizing cost-effectiveness math to avoid undervaluing medicines
Do Cost-Effectiveness Analyses Account for Drug Genericization? A Literature Review and Assessment of Implications
How GCEA can Rebut Questions of Value

The Failure to Communicate Value

Watch NPLB's founder Peter Kolchinsky present at November's CNS Summit about the importance of innovators communicating the true value of drugs and NPLB's work.

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