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. 2011 Jul;30(4):695-706.
doi: 10.1016/j.jhealeco.2011.05.012. Epub 2011 Jun 1.

The impact of comparative effectiveness research on health and health care spending

Anirban Basu  1 , Anupam B Jena, Tomas J Philipson
Affiliations

The impact of comparative effectiveness research on health and health care spending

Anirban Basu et al. J Health Econ. 2011 Jul.

Abstract

Comparative effectiveness research (CER) is thought to identify what works and does not work in health care. We interpret CER as infusing evidence on product quality into markets, shifting the relative demand for products in CER studies. We analyze how shifts in demand affect health and health care spending and demonstrate that CER may raise or lower overall health when treatments have heterogeneous effects, but payers respond with product-specific coverage policies. Among patients with schizophrenia, we calibrate that subsidy policies based on the clinical trial CATIE may have reduced overall health by inducing some patients to switch away from schizophrenia treatments that were effective for them towards winners of the CER.

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Figures

Fig. 1
Fig. 1
Impact of CER on treatment demand when insurance coverage responds to CER.
Fig. 2
Fig. 2
Distribution of treatment responses.
Fig. 3
Fig. 3
Patterns of utilization and outcomes under the Pre-CATIE policy.
Fig. 4
Fig. 4
Patterns of utilization and outcomes under a partial coverage policy for losers of CER.
Fig. 5
Fig. 5
Patterns of utilization and outcomes under a no-coverage policy for losers of CER.
See this image and copyright information in PMC

References

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