In: Economics
What does insurance do to a CEF?
Group of answer choices
nothing
shifts it to the right
shifts it down
shifts it to the left
all of the choices are possible
The cost-effectiveness frontier is the line connecting successive points on a cost-effectiveness plane which each represent the effect and cost associated with different treatment alternatives. The gradient of a line segment represents the ICER of the treatment comparison between the two alternatives represented by that segment. The cost-effectiveness frontier consists of the set of points corresponding to treatment alternatives that are considered to be cost-effective at different values of the cost-effectiveness threshold. The steeper the gradient between successive points on the frontier, the higher is the ICER between these treatment alternatives and the more expensive alternative would be considered cost-effective only when a high value of the cost-effectiveness threshold is assumed. Points not lying on the cost-effectiveness frontier (usually above and to the left of the frontier) represent treatment alternatives that are not considered cost-effective (compared with a relevant alternative lying on the frontier) at any value of the cost-effectiveness threshold.Hence due to insurance sucessfull points will shift rightwards.
(A) part is a correct answer