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Principles of selecting cost-effectiveness thresholds in price-taker countries
Zoltán Kaló1,2,3, Maureen Rutten-van Mölken4,5,6, Eline Aas7,8
1Center for Health Technology Assessment, Semmelweis University, Budapest, Hungary.
Expert Review of Pharmacoeconomics & Outcomes Research
|August 7, 2026
Summary
Price-taker countries need well-defined cost-effectiveness thresholds (CETs) to evaluate new medicines. This paper guides establishing and updating these crucial economic assessment tools for pharmaceutical value.
Area of Science:
- Health Economics
- Pharmaceutical Policy
- Health Technology Assessment
Background:
- Small market countries act as price-takers, lacking pharmaceutical pricing power.
- Cost-effectiveness thresholds (CETs) are vital for assessing new medicine value in these nations.
Purpose of the Study:
- To provide an overview of establishing or reconsidering CETs in pharmaceutical price-taker countries.
- To detail key aspects of selecting and applying CETs in policy decisions.
Main Methods:
- Review of methodologies for establishing baseline CETs.
- Analysis of factors influencing CET modification for justified higher spending.
- Examination of the policy decision-making process involving CETs.
Main Results:
- Many academic CET approaches lack practical implementation.
- Upcoming years will see several price-taker countries introducing or updating CETs.
- Economic growth may lead lower-income countries to reduce CETs, while higher-income nations face pressure to increase them.
Conclusions:
- Effective CETs are essential for pharmaceutical market access in price-taker countries.
- Policy decisions regarding CETs require careful consideration of economic factors and growth.
- Future adjustments in CETs will reflect economic realities and inflation.
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