Cost-Beenfit/Cost-Effectiveness Analysis

Benefit and Cost of Annual Mammogram Age 40 to 49

Assumptions

Woman age 40 at average risk of breast cancer. Annual mammogram age 40 to 49 EPA estimate of the economic value of a life of $8 million

Benefit of Annual Mammogram

Health effect: Reduction in breast cancer mortality risk of 0.05% Value of health effect: $8 million x 0.0005 =$4,000

Note: 10 year risk of death from automobile accident: 0.11%

Cost of Annual Mammogram

10 year risk of a false positive: 60% Risk of overdiagnosis if false positive: 25% Risk of overdiagnosis: 60% x 25% = 15%

Mammogram cost: $100 x 10 = $1,000 False positive cost: $850 x 0.60 = $510 Overdiagnosis cost: $51,800 x 0.15 = $7,770 Time cost: Implicit Psychological cost: Implicit Discomfort cost: Implicit Total Explicit Cost $9,280

Net Benefit = $4,000 - $9280 = - $5,280