OBJECTIVES: In order for a new therapy to be included and reimbursed on the basic list of treatments covered by Croatian Institute for Health Insurance (HZZO), it must prove to have a positive effect on the budget impact analysis (BIA). The standard therapy for patients suffering from advanced head and neck cancer is chemoradiotherapy (mainly platinum and radiotherapy). However, if chemotherapy proves to be contraindicative, only radiotherapy is applied. Cetuximab inhibits EGFR, which induces the apoptosis of cancer cells. It has been proven that the implementation of immunoradiotherapy contributes to the overall survival of patients. METHODS: Known costs of the standard therapy for advanced head and neck cancer were compared with the costs of the proposed new therapy (cetuximab + radiotherapy). The costs are shown in the croatian currency (HRK) (1 Euro = 7,4 HRK). The increased costs of immunotherapy are compared to the data on efficiency from published literature. RESULTS: Approximately 212 patients with advanced head and neck cancer receive treatment in Croatia every year. If chemotherapy is contraindicative, a standard radiotherapy is applied (42 patients). The HZZO spends yearly 840.000,00 HRK on the treatment of those patients. The inclusion of cetuximab into the standard therapy would increase the total yearly costs by 3,082.650,90 HRK. When compared to radiatiotherapy, immunoradiotherapy prolongs the control of the illness (14,9 vs. 24,4 months), and the overall survival of patients (29,3 vs. 49,0 months). The cost for one added life-year per patient,  would be approximately 89.738,00 HRK. CONCLUSIONS: The inclusion of immunotherapy into the standard treatment of patients with advanced head and neck cancer would have a negative impact on the budget of the HZZO. The average costs for one added life-year are lower than the average costs of chronic kidney insufficiency patients.