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Valuing Viagra: what is restoring potency worth?

Y S Kwok¹, C Kim

¹University of Washington, Seattle, USA.

Effective Clinical Practice : ECP

|October 28, 1999

Summary

Viagra (sildenafil) is cost-effective for treating impotence when quality of life is significantly reduced. The drug meets cost-effectiveness criteria if the utility of life with impotence is below a certain threshold, varying with usage frequency.

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Area of Science:

Health Economics
Pharmacoeconomics
Medical Ethics

Background:

Viagra (sildenafil) use for erectile dysfunction has surged, prompting debate on insurance coverage due to cost and the definition of medical necessity.
The cost-effectiveness of Viagra is a key factor in discussions regarding its accessibility and insurance reimbursement.

Purpose of the Study:

To determine the threshold utility of life with impotence for Viagra to be considered cost-effective.
To evaluate Viagra's cost-effectiveness using the standard $50,000 per quality-adjusted life-year (QALY) criterion.

Main Methods:

Calculated the utility of life with impotence using a specific equation.
Assessed cost-effectiveness based on Viagra's price ($10/pill) and varying usage frequencies (1-3 times/week).

Main Results:

Viagra is cost-effective if the utility of life with impotence is <0.98 (twice weekly use), <0.99 (once weekly), or <0.97 (thrice weekly).
These thresholds are relative to the quality of life without impotence.

Conclusions:

Viagra can be considered a cost-effective intervention for men experiencing significant quality of life reduction due to impotence.
The study supports the cost-effectiveness of Viagra for specific patient populations, informing insurance coverage decisions.

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