3. The following information has been gathered on the costs and effectiveness of the two treatments. A and B. In this problem, costs and consequences are not discounted.

a. What is the total cost for the survivors receiving treatment A? For decedents

(assuming sudden death)?

b. What is the total cost for survivors receiving treatment B? For decedents?

c. What is the expected cost for those patients receiving treatment A? Treatment B?

d. Draw a simple decision tree showing the costs and consequences of each treatment option.

e. Calculate the incremental cost and incremental benefit of the treatment alternatives.

f. What is the ICER?

	A	B
Mortality Rate	2%	5%
Life expectancy for survivors	20 years	10 years
Initial treatment cost	$10,000	$3,000
Follow-up costs, year 1	$5,000	$1,000
Annual follow up costs, all subsequent years	$1,000	$500