HTA10 Bring out Your Dead: A Review of the Cost Minimization Approach in Health Technology Assessment Submissions to the Australian Pharmaceutical Benefits Advisory Committee

Abstract

Published literature has levied a barrage of criticism against the cost-minimization approach to economic evaluation for new medicines. The prevailing papers on the topic has declared its ‘death’. However, the approach is the primary means by which new medicines are listed for public subsidy in Australia. The Pharmaceutical Benefits Advisory Committee (PBAC), which assesses new medicines for public subsidy, maintain Methodology Guidelines that indicate when the approach would be acceptable. While these Methods Guidelines establish requirements for cost-minimization that is theoretically robust and avoid the issues identified in the literature, adherence to these Methods Guidelines has not been assessed. This research aims to explore the factors that influence the PBAC recommendation for subsidy of new medicines that use a cost-minimization approach to economic evaluation, including adherence to the Methodology Guidelines.