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Two drugs for the treatment of osteoporosis are being evaluated by a pharmacy benets manager for possible inclusion on a payer's drug formulary. Drug A

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Two drugs for the treatment of osteoporosis are being evaluated by a pharmacy benets manager for possible inclusion on a payer's drug formulary. Drug A costs $2400 per treatment and results in a total of 200 quality-adjusted life years saved (QALY's). Drug B costs $1800 per treatment and results in a total of 134 quality-adjusted life years saved (QALY's). A. What is the incremental cost-effectiveness ratio for Drug A? B. Based on the result in part A, in which quadrant of the cost- effectiveness grid would the Drug A vs. Drug B comparison be located? Explain your result. C. Which of the two drugs would you recommend for inclusion on ti]; m formulary based on the cost-effectiveness criterion and why? be essentially equivalent from a cost-effectiveness standpoint

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