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QALYs: is the value of treatment proportional to the size of the health gain?

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  • Erik Nord
  • Anja Undrum Enge
  • Veronica Gundersen

Abstract

In societal priority setting between health programs for different patient groups, many people are reluctant to discriminate too strongly between those who can benefit much from treatment and those who can benefit moderately. We suggest that this view of distributive fairness has a counterpart in personal valuations of gains in health. Such valuations may be influenced by psychological reference points and diminishing marginal utility such that the individual utility of care in patient groups with different potentials may be more similar than what conventional QALY estimates suggest. In interviews in three convenience samples, there is some support for the hypothesis. Most respondents do not think that desire for treatment is significantly less in those who stand to gain only moderately compared with those who stand to gain much – even when the treatment is associated with a mortality risk. When stating insurance preferences, a majority of subjects express a greater concern for avoiding the worst states in question than for maximising expected value for money in terms of treatment effects. The tendency applies to outcomes in terms of both quality and quantity of life. Choices between prefixed response options fit well with oral explanations of these choices. Copyright © 2009 John Wiley & Sons, Ltd.

Suggested Citation

  • Erik Nord & Anja Undrum Enge & Veronica Gundersen, 2010. "QALYs: is the value of treatment proportional to the size of the health gain?," Health Economics, John Wiley & Sons, Ltd., vol. 19(5), pages 596-607, May.
  • Handle: RePEc:wly:hlthec:v:19:y:2010:i:5:p:596-607
    DOI: 10.1002/hec.1497
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    Cited by:

    1. Erik Nord, 2018. "Beyond QALYs: Multi-criteria based estimation of maximum willingness to pay for health technologies," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(2), pages 267-275, March.
    2. Paul F M Krabbe, 2013. "A Generalized Measurement Model to Quantify Health: The Multi-Attribute Preference Response Model," PLOS ONE, Public Library of Science, vol. 8(11), pages 1-12, November.
    3. Ruslan Jabrayilov & Antoinette D I van Asselt & Karin M Vermeulen & Sheri Volger & Patrick Detzel & Livia Dainelli & Paul F M Krabbe & for the Pediatrics expert group, 2018. "A descriptive system for the Infant health-related Quality of life Instrument (IQI): Measuring health with a mobile app," PLOS ONE, Public Library of Science, vol. 13(8), pages 1-14, August.
    4. Laura Vallejo-Torres & Borja García-Lorenzo & Oliver Rivero-Arias & José Luis Pinto-Prades, 2020. "The societal monetary value of a QALY associated with EQ-5D-3L health gains," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(3), pages 363-379, April.
    5. Hammitt, James K. & Haninger, Kevin, 2017. "Valuing nonfatal health risk as a function of illness severity and duration: Benefit transfer using QALYs," Journal of Environmental Economics and Management, Elsevier, vol. 82(C), pages 17-38.
    6. Nord, Erik, 2012. "Measuring concerns for severity: Re-examination of a health scale with purported equal interval properties," Health Policy, Elsevier, vol. 105(2), pages 312-316.
    7. Anthony J. Culyer & Yvonne Bombard, 2012. "An Equity Framework for Health Technology Assessments," Medical Decision Making, , vol. 32(3), pages 428-441, May.
    8. Anthony J Culyer & Yvonne Bombard, 2011. "An Equity Checklist: a Framework for Health Technology Assessments," Working Papers 062cherp, Centre for Health Economics, University of York.

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