Mauskopf J, Earnshaw SR, Brogan A, Hogue S. Building a budget impact model: budget impact analysis training. Presented at the ISPOR In-person Training Program; March 22, 2018. Chapel Hill, NC.

Through presentation and hands-on exercises, participants build a budget impact model and interpret the results. Starting with an overview of what a budget impact analysis is and why it is important, good practice guidelines and the six basic steps that must be completed to determine the current budget will be explored. These steps are: 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. To illustrate these steps, we will guide participants through the construction of a budget impact model using data sources provided. Participants will work with the Faculty to create each component of the budget impact analysis, thus gaining an understanding of its structure and the calculations. They will also interpret results, consider critical questions to consider when adapting a budget impact analysis to their own health plan, and review how these analyses are used by payers and other decision makers. The course will cover technical topics such as use of static versus dynamic budget impact models and differences between budget impact analyses for drugs compared with those for device or diagnostic technologies.

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