What is a health economic model?
A health economic model simulates real-world clinical and financial outcomes to evaluate the value of a treatment. Models may estimate cost-effectiveness, cost-utility, or budget impact, using data inputs such as treatment costs, disease progression, utility weights, and event probabilities. Common structures include decision trees, Markov models, and microsimulation.
Why are health economic models important in pharmaceutical access and reimbursement?
These models help demonstrate a product’s value to payers and HTA bodies, providing evidence to support pricing and reimbursement decisions. They allow companies to explore different scenarios, test assumptions, and highlight a therapy’s potential to deliver long-term savings or improved outcomes.
