Economic information and modeling report / Budget impact model4.2.1Approach and framework2 evidence topics · 1 sourceICER potential budget impact analysis: definition and link to the cost-effectiveness models“We used results from the cost-effectiveness models to estimate the total potential budgetary impact of tavapadon for the Parkinson’s disease population. Potential budget impact is defined as the total differential cost of using tavapadon rather than relevant existing therapy for the treated population, calculated as differential health care costs (including drug costs) minus any offsets from averted health care events.” (opens the source at this quote in a new tab)CopyFlag“The intent of our approach to budgetary impact is to document the percentage of patients that could be treated at selected prices without crossing a budget impact threshold that represents a potential trigger for policy mechanisms to improve affordability, such as changes to pricing, payment, or patient eligibility.” (opens the source at this quote in a new tab)CopyFlagDerivation of the potential budget impact threshold“this threshold is based on an underlying assumption that health care costs should not grow much faster than growth in the overall national economy. From this foundational assumption, our potential budget impact threshold is derived using an estimate of growth in US gross domestic product (GDP) +1%, the average number of new drug approvals by the FDA over the most recent five-year period, and the contribution of spending on retail and facility-based drugs to total health care spending.” (opens the source at this quote in a new tab)CopyFlag