(Answered) Consider the pricing of a biologic therapy and use the

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Consider the pricing of a biologic therapy, and use the following information to calculate the cost per QALY and the incremental QALYs per person. Does QALY analysis consider the cost savings from the biologic therapy? If so, explain how. If not, explain what information in the biologic case would be necessary to calculate the cost savings?

Cost per dose: $40

Cost per administration: $2

Number of Doses: 360

The biologic therapy has a 60% chance of success in curing the disease.

At age 25 additional years of life with the disease state: 20 years & QALY per year: 0.6

At age 25 additional years of life without disease state: 60 years & QALY per year: 0.9

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