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Amgenentech, Inc. has developed a new agent (Solvital ) for the treatment of disease X. The table below summarizes the present values of cost and

Amgenentech, Inc. has developed a new agent (Solvital) for the treatment of disease X. The table below summarizes the present values of cost and health outcomes associated with the use of Solvital in population Z with disease X over a 20 year period, compared to currently available treatment alternatives:

Treatment Cost QALYs
No Rx 10,000 5
Drug A 24,000 9
Drug B 42,000 11
Drug C 48,000 12
Sovital 528,000 16

Suppose you are an executive in a managed care organization charged with the responsibility of determining whether Solvital will be covered for the treatment of disease X in population Z within your health plan.

Complete the table below with treatments ordered from least to most costly to provide a complete incremental cost-effectiveness analysis for this problem, and answer the following questions: [Explain your answers]

Treatment Cost QALYs Cost QALYs ICER
No Rx 10,000 5
Drug A 24,000 9

Drug B 42,000 11

Drug C 48,000 12

Sovital 528,000 16

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