Table 5

Variables included in the decision analysis model, their assigned high, low, and baseline values, and the effect on the incremental cost-effectiveness ratio (ICER) of insurance relative to no insurance.

Used in Model*

Effect on ICER

Variable

Baseline

High

Low

High

Low

Administrative costs

5%

25%

0%

$41,000

$21,000

Hazard Ratio

1.5

1.75

1.25

$19,000

$37,000

Discount rate

3%

5%

0%

$26,000

$23,000

Error in cost†

0%

125%

0.75%

$39,000

10,000

* All values represent the percentage change in the baseline value except for the hazard ratio, which was varied from previously published estimates to the high value observed in logistic regression analysis [see 1].

†Variability in the cost estimate for the supplemental Medicare insurance. The baseline cost is multiplied by an error term ranging from 0.75 to 1.25.

Franks et al. BMC Health Services Research 2005 5:23   doi:10.1186/1472-6963-5-23