This course will describe the methods used to estimate the budget impact of a new health care technology and will present six basic steps for estimating budget impact: (1) estimating the target population; (2) selecting a time horizon; (3) identifying current and projected treatment mix; (4) estimating current and future drug costs; (5) estimating change in disease-related costs; and (6) estimating and presenting changes in annual budget impact and health outcomes. Both static and dynamic methods for estimating the budget and health impact of adding a new drug to a health plan formulary will be presented. These six steps will be illustrated using actual budget impact models.

This course is designed for those with some experience with pharmacoeconomic analysis.