Ica Cca Ratio Calculator

ICA / CCA Ratio Calculator (ICER)

New Intervention (B)

e.g., QALYs, success rate, or years

Standard Intervention (A)

Baseline outcome measure

Calculation Results

Incremental Cost (ΔC):

Incremental Effectiveness (ΔE):

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ICA/CCA Ratio (ICER):

(Cost per unit of additional effectiveness)

Understanding the ICA/CCA Ratio in Cost-Effectiveness Analysis

The ICA/CCA Ratio, more commonly referred to in health economics as the Incremental Cost-Effectiveness Ratio (ICER), is a critical metric used to compare the economic value of two different interventions. It provides a numerical value representing the additional cost required to achieve one additional unit of effectiveness (such as a life year gained or a Quality-Adjusted Life Year, QALY).

The Mathematical Formula

The ratio is calculated by dividing the difference in costs by the difference in outcomes:

Ratio = (Cost_New – Cost_Standard) / (Effectiveness_New – Effectiveness_Standard)

How to Interpret Results

• Low Ratio: Suggests the new intervention provides a high degree of extra benefit for a relatively low extra cost.
• High Ratio: Indicates that the additional benefits come at a high financial premium.
• Negative Ratio: This usually occurs in two scenarios:
  1. The new intervention is cheaper and more effective (Dominant).
  2. The new intervention is more expensive and less effective (Dominated).

Real-World Example

Imagine a standard medication costs $30,000 and provides a patient with 0.60 QALYs. A new biotech drug costs $50,000 but increases effectiveness to 0.85 QALYs.

• Incremental Cost (ΔC): $50,000 – $30,000 = $20,000
• Incremental Effectiveness (ΔE): 0.85 – 0.60 = 0.25 QALYs
• ICA/CCA Ratio: $20,000 / 0.25 = $80,000 per QALY

Decision-makers then compare this $80,000 figure against a "willingness-to-pay" threshold to decide if the new drug should be funded.