Table G.2.

Cost-Effectiveness: Pharmacotherapy

	Current Eligibility	Extended Eligibility
Additional Medical Costs	−343	−462
Additional earnings	300	91
Additional Deadweight Loss	44	−94
Treatment Cost	5 000	5 000
Total Economic Cost	4 401	4 353
Life Expectancy Gain	0.09	0.04
Value of Life Expectancy Gain	17 235	7 062
Net Value	12 8234	2 710
95% CI	(−19 628 to 60 921)	(−20 250 to 34 691)
Incremental Cost-Effectiveness Ratio	51 066	123 260

Notes: averages from 1000 simulations of the projection for the cohort age 50 in 2010. Real discount rate is 3%. All dollar figures are in terms of 2010 dollars. See text for definition of the scenarios. The additional medical costs minus additional earnings plus deadweight loss (see text for definition) are added to the treatment cost to define the total economic cost. The value of the life expectancy gain is computed using a value of $200,000 per statistical life year. The net value is defined as the difference between the value of the life expectancy gain minus the total economic cost. A 95% confidence interval is reported for this value by taking the 2.5 and 97.5 percentile of the net values over 1000 simulations. The incremental cost effectiveness ratio is the total economic cost divided by the gain in life years from the intervention.