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Table 5 Variables included in the decision analysis model, their assigned high, low, and baseline values, and the effect on the incremental cost-effectiveness ratio (ICER) of insurance relative to no insurance.

From: Is expanding Medicare coverage cost-effective?

  Used in Model* Effect on ICER
Variable Baseline High Low High Low
Administrative costs 5% 25% 0% $41,000 $21,000
Hazard Ratio 1.5 1.75 1.25 $19,000 $37,000
Discount rate 3% 5% 0% $26,000 $23,000
Error in cost† 0% 125% 0.75% $39,000 10,000
  1. * All values represent the percentage change in the baseline value except for the hazard ratio, which was varied from previously published estimates to the high value observed in logistic regression analysis [see Additional file 1].
  2. †Variability in the cost estimate for the supplemental Medicare insurance. The baseline cost is multiplied by an error term ranging from 0.75 to 1.25.