Baumgardner CBO Study Cited in New York Times
In a new commentary by Aaron Carroll appearing in the New York Times, the author examines preventative care and conventional wisdom that the practice saves money. Surprisingly, Carroll makes some strong arguments that the costs for preventative care are actually significant, but that the practice can improve quality of life at a very reasonable price.
Central to Carroll’s argument is a study recently published in the New England Journal of Medicine in which researchers modeled how a policy to reduce smoking through higher cigarette taxes might affect federal spending. The study, authored by the CBO, was led by PHE Senior Research Economist James Baumgardner during his tenure with the agency.
To read the complete article, please click here.
By: Jason Shafrin, PhD Sr. Director, Policy and Economics and Jacki Chou, MPL Senior Director, Policy and Economics The recent announcement that CVS Caremark will use value-based metrics to inform formulary design at first appears a step in the right direction. However, using value measurements from a single nongovernmental organization—the Institute for Clinical and Economic Review (ICER)—based on a limited picture of treatment value may be problematic. Using this single assessment of value in an effort solely to exclude drugs from a major insurance formulary is even more worrisome and fails to recognize the heterogeneity in patient clinical needs and preferences.