Economic Evaluation problem: 1. 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. Treatment A Mortality rate Treatment B 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 |$1,000 $500 subsequent years a. What is the total cost for the survivors receiving treatment A? b. What is the total cost for survivors receiving treatment B? C. What is the expected cost for those patients receiving treatment A? d. Treatment B? e. Calculate the incremental cost and incremental benefit of the treatment alternatives. f. What is the ICER? g. How does cost-benefit analysis differ from cost-effectiveness analysis? a . initial + Flup cost , year I 10000 + 5.000 = $ 15,000 7 $ 34,000 annual Flup = $ 19,000 b $3,000 + $ 1,000 = $ 4:000 ) $ 8, 500 500 ( 9 ) = $ 4, 500 C. initial +