Valuing Health for Regulatory Cost-Effectiveness Analysis

381 Pages·2006·1.06 MB·English

VALUING HEALTH
FOR REGULATORY COST-EFFECTIVENESS ANALYSIS
Wilhelmine Miller, Lisa A. Robinson, and Robert S. Law rence, Editors
Committee to Evaluate Measures of Health Benefits fo r
Environmental, Health, and Safety Regulation
Board on Health Care Services
INSTITUTE OF MEDICINE
OF THE NA TIONA£ ACADEMIES
THE NATIONAL ACADEMIES PRESS
Washington, D.C.
www.nap.edu
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NOTICE: The project that is the subject of this report was approved by the Governing Board
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The members of the committee responsible for the report were chosen for their special
competences and with regard for appropriate balance.
This study was supported by Contract No. 282-99-0045 between the National Academy of
Sciences and Department of Health and Human Services. Any opinions, findings, conclusions,
or recommendations expressed in this publication are those of the author(s) and do not
necessarily reflect the view of the organizations or agencies that provided support for this
project.
Library of Congress Cataloging-in-Publication Data
Valuing health for regulatory cost-effectiveness analysis / Wilhelmine
Miller, Lisa A. Robinson, and Robert S. Lawrence, editors ; Committee
to Evaluate Measures of Health Benefits for Environmental, Health,
and Safety Regulation, Board on Health Care Services.
p. ; cm.
Includes bibliographical references and index.
ISBN 0-309-10077-1 (casebound book)
1. Medical care—Cost effectiveness—Research—Methodology. 2. Cost
effectiveness. I. Miller, Wilhelmine. II. Robinson, Lisa A.
III. Lawrence, Robert S., 1938- . IV. Institute of Medicine (U.S.).
Committee to Evaluate Measures of Health Benefits for Environmental,
Health, and Safety Regulation.
[DNLM: 1. Cost-Benefit Analysis—methods—United States. 2. Health
Policy—economics—United States. 3. United States Government Agencies
—United States. WA 540 AA1 V215 2006]
RA410.5.V35 2006
362.1068′1—dc22
2006001486
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COMMITTEE TO EVALUATE MEASURES OF HEALTH BENEFITS
FOR ENVIRONMENTAL, HEALTH, AND SAFETY REGULATION
ROBERT S. LAWRENCE (Chair), Associate Dean for Professional
Practice and Programs and Edyth Schoenrich Professor of Preventive
Medicine, Bloomberg School of Public Health, Johns Hopkins
University, Baltimore, Maryland
HENRY A. ANDERSON, Chief Medical Officer, Environmental and
Occupational Disease Epidemiologist, Wisconsin Division of Public
Health, Madison
RICHARD T. BURNETT, Senior Research Scientist, Healthy
Environments and Consumer Safety Branch, Health Canada, Ottawa,
Ontario, Canada
CARL F. CRANOR, Professor of Philosophy, University of California,
Riverside
MAUREEN L. CROPPER, Professor, University of Maryland, and Lead
Economist, The World Bank, Washington, DC
NORMAN DANIELS, Professor of Ethics and Population Health,
Harvard School of Public Health, Boston, Massachusetts
DENNIS G. FRYBACK, Professor of Population Health Sciences and
Industrial Engineering, Department of Population Health Sciences,
University of Wisconsin, Madison
ALAN M. GARBER, Staff Physician, Veterans Affairs Palo Alto Health
Care System; Henry J. Kaiser, Jr. Professor and Professor of
Medicine, Director, Center for Health Policy, and Director, Center
for Primary Care and Outcomes Research, Stanford University,
Stanford, California
MARTHE R. GOLD, Arthur C. Logan Professor and Chair, Department
of Community Health and Social Medicine, City University of New
York Medical School, New York
JAMES K. HAMMITT, Professor of Economics and Decision Sciences
and Director, Harvard Center for Risk Analysis, Harvard University,
Boston, Massachusetts
LISA I. IEZZONI, Professor of Medicine, Harvard Medical School, and
Co-Director of Research, Division of General Medicine and Primary
Care, Beth Israel Deaconess Medical Center, Boston, Massachusetts
PETER D. JACOBSON, Professor of Health Law and Policy and
Director, Center for Law, Ethics, and Health, University of Michigan
School of Public Health, Ann Arbor
EMMETT KEELER, Senior Mathematician and Professor of Health
Economics, RAND, Santa Monica, California
WILLARD G. MANNING, Professor, Harris School of Public Policy
Studies, The University of Chicago, Chicago, Illinois
v
CHARLES POOLE,* Associate Professor, Department of Epidemiology,
University of North Carolina School of Public Health, Chapel Hill
DAVID A. SCHKADE, Jerome Katzin Professor, Rady School of
Management, University of California, San Diego
ADVISERS TO THE COMMITTEE
ALAN KRUPNICK, Senior Fellow and Director, Quality of the
Environment, Resources for the Future, Washington, DC
JUDITH L. WAGNER, Scholar-in-Residence, Institute of Medicine,
Washington, DC
MILTON C. WEINSTEIN, Henry J. Kaiser Professor of Health Policy
and Management, Harvard School of Public Health and Center for
Risk Analysis, Boston, Massachusetts
IOM Staff
Wilhelmine Miller, Project Director
Ryan L. Palugod, Research Assistant
Principal Consultant
Lisa A. Robinson, Independent Consultant
*Served from March 2004 to June 2005.
vi
Reviewers
This report has been reviewed in draft form by individuals chosen for
their diverse perspectives and technical expertise, in accordance with proce-
dures approved by the National Research Council’s (NRC’s) Report Review
Committee. The purpose of this independent review is to provide candid
and critical comments that will assist the institution in making its published
report as sound as possible and to ensure that the report meets institutional
standards for objectivity, evidence, and responsiveness to the study charge.
The review comments and draft manuscript remain confidential to protect
the integrity of the deliberative process. We wish to thank the following
individuals for their review of this report:
ELENA ANDRESEN, Professor of Epidemiology, University of Florida,
College of Public Health and Health Professions, and Research
Health Scientist, North Florida/South Georgia VA Medical Center,
Gainesville
DAVID A. ASCH, Eilers Professor of Health Care Management
and Economics, Executive Director, Leonard Davis Institute of
Health Economics, The Wharton School, University of Pennsylva-
nia, Philadelphia
TRUDY A. CAMERON, Professor of Economics, University of
Oregon, Eugene
LELAND B. DECK, Senior Economist, U.S. Environmental Protection
Agency (retired) and Vice President, Abt Associates (retired), Rock-
ville, Maryland
vii
viii REVIEWERS
AMY D. KYLE, Research Scientist and Lecturer, Environmental Health
Sciences Division, School of Public Health, University of California,
Berkeley
JOSEPHINE MAUSKOPF, Global Director, Health Economics, RTI-
International, Research Triangle Park, North Carolina
THOMAS O. MCGARITY, Professor, University of Texas School of
Law, Austin
RICHARD D. MORGENSTERN, Senior Fellow, Resources for the
Future, Inc., Washington, DC
CHARLES E. PHELPS, Provost, University of Rochester, Rochester,
New York
MICHAEL STOTO, Senior Statistical Scientist and Associate Director
for Public Health, Center for Domestic and International Health Se-
curity, The RAND Corporation, Arlington, Virginia
CASS SUNSTEIN, Karl N. Llewellyn Distinguished Service Professor
of Jurisprudence, School of Law, The University of Chicago, Chi-
cago, Illinois
PETER UBEL, Associate Professor of Internal Medicine, Director, Pro-
gram for Improving Health Care Decisions, and Staff Physician, Ann
Arbor Veterans Affairs Medical Center, University of Michigan, Ann
Arbor
ROBERT WACHBROIT, Professor of Philosophy, Maryland School
of Public Policy, University of Maryland, College Park
JONATHAN B. WIENER, Professor of Law, Environmental Policy,
and Public Policy Studies, Duke University, and Founding Director,
Center for Environmental Solutions, Durham, North Carolina
Although the reviewers listed above have provided many constructive
comments and suggestions, they were not asked to endorse the conclusions
or recommendations nor did they see the final draft of the report before its
release. The review of this report was overseen by John C. Bailar III, Profes-
sor Emeritus, The University of Chicago, and Louise B. Russell, Research
Professor, Institute for Health, Health Care Policy and Aging Research,
Rutgers, The State University of New Jersey. Appointed by the NRC and
Institute of Medicine, they were responsible for making certain that an
independent examination of this report was carried out in accordance with
institutional procedures and that all review comments were carefully con-
sidered. Responsibility for the final content of this report rests entirely with
the authoring committee and the institution.
Preface
Valuing Health for Regulatory Cost-Effectiveness Analysis responds to
several important analytical and policy challenges. These include how to
estimate the health-related effects of regulatory interventions to reduce
environmental, health, and safety risks; how to conduct informative cost-
effectiveness analyses (CEAs) of such interventions prospectively; and how
to use the results of CEAs and of other kinds of economic analyses in public
policy decisions about regulating risks to human health and safety. In 2003
John D. Graham, the Administrator of the Office of Information and Regu-
latory Affairs in the Office of Management and Budget, asked the Institute
of Medicine (IOM) to convene an expert consensus committee to address
these questions. A consortium of federal regulatory and health policy of-
fices and agencies supported this effort financially and, equally essentially,
with information and analytic expertise generously provided to the study
committee throughout the project.
This report of the Committee to Evaluate Measures of Health Benefits
for Environmental, Health, and Safety Regulation is the latest in a series by
the IOM and the National Research Council (NRC) of The National Acad-
emies that have addressed risk assessment and communication; economic
evaluation of environmental, health, and safety risks; and measurement of
population health. These precursor reports include the NRC reports Risk
Assessment in the Federal Government: Managing the Process (1983);
Improving Risk Communication (1989); Valuing Health Risks, Costs, and
Benefits for Environmental Decision Making: Report of a Conference
(1990); and Estimating the Public Health Benefits of Proposed Air Pollu-
ix