Chapter 10: Pharmacoeconomics

Question 1

Pharmacoeconomics is defined as:

Answer 1

The analysis of the cost & consequences of any healthcare related treatment

Question 2

Pharmacies have tried to combat the increase in prescription drug spending by using:

Answer 2

generic drugs

Question 3

Pharmacoeconomic drug studies use these three criteria:

Answer 3

1. Cost minimization
2. Cost-benefit
3. Cost-effectiveness

Question 4

A pharmacoeconomical analysis is performed to:

Answer 4

Answer a specific type of question

Question 5

For any given pharmacoeconomical analysis it is important to know:

Answer 5

The point of view (who is determining the cost to the society)

Question 6

According to pharmacoeconomical analysis there are three types of costs:

Answer 6

1. Direct
2. Indirect
3. Intangible

Question 7

Direct costs are defined as:

Answer 7

Costs directly attributed to the treatment of a disease

Question 8

Examples of direct costs are:

Answer 8

Medications, PCP time, diagnostic tests, transportation, childcare

Question 9

Indirects costs are related to:

Answer 9

morbidity and mortality

Question 10

Indirect costs associated with healthcare treatments are:

Answer 10

Loss or reduction of wages d/t illness or costs associated with premature death

Question 11

Indirect costs can be divided into two categories:

Answer 11

1. Human capital method
2. Willingness to pay method

Question 12

Human capitol method of indirect costs assumes:

Answer 12

Losses based on an individual’s capacity to earn money

Question 13

In ‘willingness to pay’ method of indirect costs the patient is asked:

Answer 13

How much money they would be willing to spend to reduce likelihood of a particular illness

Question 14

When a pharmacoeconomic analysis looks at two or more treatment alternatives that are considered EQUAL in efficacy and compares the costs of each it is referred to as:

Answer 14

Cost-minimization analysis

Question 15

When a pharmacoeconomic analysis looks at the given cost of a specific disease in a given population:

Answer 15

Cost of illness analysis

Question 16

Cost of illness analysis includes:

Answer 16

1. Cost of medical & non-medical resources used to treat the illness
2. Loss of productivity by the patient

Question 17

Cost-Effectiveness compares the cost of two or more treatments that:

Answer 17

are NOT therapeutically equivalent

Question 18

In order for a treatment to be considered cost effective it must have 1/3 conditions:

Answer 18

1. The alternative treatment may be less expensive and at least as effective
2. It may be more expensive but provides an additional benefit worth the cost
3. It may be less expensive and less effective in a situation in which the extra benefit is not worth the extra cost

Question 19

Type of analysis which calculates the cost of a specific treatment and compares it to the dollar value of the benefit received:

Answer 19

Cost-benefit analysis

Question 20

Cost-Benefit analysis can look at two interventions and determine:

Answer 20

Which intervention produces a greater benefit for the money even though the two benefits may not be similar

Question 21

The results of a cost-benefit analysis can be described in two formats:

Answer 21

Ratio:
Treatment: $5,000
Benefit: $50,000
Benefit/Cost= 10:1

Dollar difference:
$50,000 - $5,000= $45,000

Question 22

In a two-tired benefit plan, a patient pays a higher cost for ___ drugs than for ___ drugs

Answer 22

Higher cost for brand name than for generic drugs

Question 23

Prescribing generic drugs is beneficial because it:

Answer 23

Eases financial burden, enables compliance & decreases healthcare utilization

Question 24

What do pharmacies look at in order to select drugs?

Answer 24

1. Maximum allowable cost (MAC)
2. Drugs with
   the lowest acquisition cost

Question 25

One of the main issues in attempting to decrease costs of pharmacotherapy is:

Answer 25

Companies applying pressure on providers to continue prescription of brand-name drugs

Question 26

Two justification providers can use for prescribing generic over brand name drugs are:

Answer 26

1. Generic bioequivalence standards 2. Pharmacoeconomics

Question 27

Generic bioequivalance can be defined as:

Answer 27

The standard set to ensure that generic drug products are truly equivalent to the brand name drug

Question 28

When two drugs (one generic, one branded) display the same rate and extent of absorption they are:

Answer 28

Bioequivalent