How much is a payer willing to pay for a QALY gain?


By Prof. Dr Lieven Annemans, expert trainer of the courses Health Economics for Non-Health-Economists, Basics of Health Economics, and Critical New HTA Developments in Europe: Challenges & Solutions

In this 2-minute video, Prof. Dr. Lieven Annemans explains how payers decide on reimbursing a new treatment based on the number of QALYs gained, and how that differs between countries. 

What a QALY is worth to a payer


Some payers weigh the cost per QALY gained against a threshold: the amount the health system is prepared to pay for one QALY. A treatment that comes in below that figure is considered value for money.
 

A worked example


A new treatment costs £60,000 and delivers three QALYs. That works out at £20,000 for each QALY gained. Imagine a country has set its threshold at £30,000 per QALY: at £20,000 the treatment stays below it, and on that basis deserves to be adopted.
 

Why the answer differs by country


Few countries state a threshold openly. Many apply one but avoid publishing it, because they are reluctant to communicate a figure too explicitly.

  • The UK is an exception, with an explicit threshold of £30,000 per QALY.
  • The Netherlands has published three, by disease severity: €20,000 per QALY for less severe conditions, €50,000 for moderate ones, and up to €80,000 for severe ones.
  • In many other countries the decision is made dossier by dossier, with unofficial figures circulating but nothing set out in an official document.
     

Prof. Dr Lieven Annemans on how the value of a QALY is arrived at, in a recorded webinar:

📺 Webinar: What you should know about the QALY

Continue your learning from Prof. Dr Lieven Annemans

If you’d like to learn more from Prof. Dr Lieven Annemans, CELforPharma also offers 3 courses:

2-day course in Brussels:

1-day live online course:

1-day live online course:

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