Cost Effectiveness and Payment Policy

Alan M. Garber*, Mark J. Sculpher

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapter


Cost-effectiveness analysis is versatile and used widely to assist in health care decision making. This chapter discusses how cost-effectiveness analysis is used at the system or national level, particularly in the domain of coverage and payment policy. We describe its relationship to other techniques, such as cost/benefit analysis, and the theoretical and practical aspects of applying the analytic technique in a decision framework. We then discuss the diverse ways that it is now used in various settings around the world, and the ways that it might be used in the future.

Original languageEnglish
Title of host publicationHandbook of Health Economics
Number of pages27
Publication statusPublished - 1 Jan 2011

Publication series

NameHandbook of Health Economics
ISSN (Print)1574-0064


  • Cost-effectiveness analysis
  • Cost/benefit analysis
  • Decision making
  • Health policy

Cite this