The following treatments exist to reduce headaches. In recent years, extensive surveys of patients taking these treatments have revealed the average pain reductions for the different treatments as shown in the table below. The price for each treatment is also shown. Note that the benefits are measured by the percentage reduction in pain, thus your ICER should show an additional $ cost per percentage point reduction in pain.

Option Yearly Price ($) Average % reduction in pain

No Treatment 0 0

Treatment A 1200 18

Treatment B 1500 13

Treatment C 1500 22

Treatment D 2000 25

Treatment E 2500 25

Treatment F 3200 20

What treatments are on the cost effectiveness frontier and what treatments are dominated?

Calculate ICER (Incremental Cost Effectiveness Ratio) for all remaining treatment options (those on cost-effectiveness frontier).

If, without insurance, your willingness to (out-of-pocket) pay for back pain reduction amount were $60 per one percentage reduction in pain, whats the optimal option for you?

Now with insurance, you can use all treatment options at half its previous price. With the same willingness to pay amount ($60 per one percentage reduction in pain), what is the optimal option for you?

Now assume that treatments B, D, E are withdrawn from the market due to previously unknown safety issues.What is the effect on the treatment options as a result?