By NextBestFitFormulary & technology-assessment start-up
Staff, evidence contracts, and reference-price data before these bodies are absorbed into the administrative budget.
Result
$1.5B
Per resident, per year
$4
÷ 341.1M people
Per household
$11
÷ 132.2M households
How it's calculated
| # | Step | Arithmetic | Value |
|---|---|---|---|
| 1 | Start-up staff | 400 × $150,000 × 4 years | $0.2B |
| 2 | Contracted drug assessments | 500 × $1,500,000 | $0.8B |
| 3 | International reference-price data & IT | $0.51B | $0.5B |
| 4 | Total one-time cost | $1.5B |
By year
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 |
|---|---|---|---|---|---|---|
| $0.5B | $0.4B | $0.3B | $0.2B | $0.1B | $0.0B | $0.0B |
Inputs used
| Input | Kind | Value |
|---|---|---|
| Formulary Board & HTA start-up staff | estimate, medium confidence | 400 |
| Loaded annual cost per staff member | estimate, medium confidence | $150,000 |
| Start-up years before absorption into admin budget | policy, high confidence | 4 |
| Drug assessments contracted during start-up | policy, high confidence | 500 |
| Cost per contracted assessment | estimate, medium confidence | $1,500,000 |
| International reference-price data & IT | estimate, medium confidence | $0.5B |
Trade-off: Front-loaded to have prices ready for Year 1.