Mauskopf JA, Mullins D, Earnshaw SR. Budget impact analysis I: a 6-step approach. Presented at the ISPOR 2019; May 19, 2019. New Orleans, LA. Previously presented at the ISPOR 18th Annual European Congress.

This course will describe the methods used to estimate the budget impact of a new health care technology, and will present six basic steps for estimating budget impact: 1) estimating the target population; 2) selecting a time horizon; 3) identifying current and projected treatment mix; 4) estimating current and future drug costs; 5) estimating change in disease-related costs; and 6) estimating and presenting changes in annual budget impact and health outcomes. Both static and dynamic methods for estimating the budget and health impact of adding a new drug to a health plan formulary will be presented. These six steps will be illustrated using actual budget impact models.

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