Question: the following information has been gathered on the costs and...
Question details
The following information has been gathered on the costs and effectiveness of the two treatments, A and B. In this problem, costs and consequences are not discounted.
Treatment A 
Treatment B 

Mortality rate 
2% 
5% 
Life expectancy for survivors 
30 years 
20 years 
Initial treatment cost 
$20,000 
$10,000 
Follow up costs, year 1 
$5,000 
$1,000 
Annual follow up costs, all subsequent years 
$1,000 
$500 
a. What is the total cost for the survivors receiving treatment A? $54,000 For decedents (assuming sudden death)? $20,000
b. What is the total cost for survivors receiving treatment B? $25,500 For decedents? $10,000
c. What is the expected cost for those patients receiving treatment A? $52,540
d. What is the expected cost for those patients receiving treatment B? $23.995
e. Calculate the incremental cost and incremental benefit of the treatment alternatives.
f. C = E =
g. What is the ICER?
ICER = C/E =