Prescription Drugs

Department of Health written question – answered on 16th October 2014.

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Photo of Bob Neill Bob Neill Parliamentary Assembly of the Council of Europe (Substitute Member), Vice-Chair, Conservative Party

To ask the Secretary of State for Health, what the cost-per-quality adjusted life year threshold used by the National Institute for Health and Care Excellence and its predecessor bodies to determine the cost-effectiveness of medicines has been in each year since 1999; and what that threshold has been in each year in real terms (a) using the gross domestic product deflator, (b) adjusting for health pay and price inflation and (c) adjusting for the health component of the consumer price index.

Photo of George Freeman George Freeman The Parliamentary Under-Secretary of State for Business, Innovation and Skills, The Parliamentary Under-Secretary of State for Health

The National Institute for Health and Care Excellence (NICE) does not operate a fixed cost per Quality Adjusted Life Year (QALY) in the development of its technology appraisal guidance. NICE’s Guide to the Methods of Technology Appraisal explains that, for most technology appraisals, it uses a cost per QALY range of £20,000 to £30,000 in its decision-making that enables other factors to be taken into account. This range has remained unchanged since NICE was established in 1999.

NICE’s technology appraisal methods guide contains further information on the way in which NICE takes the cost per QALY into account in the development of its guidance and is available at:

www.nice.org.uk/article/pmg9/

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