Ideas to Action:

Independent research for global prosperity

CGD Policy Blogs

 

scale with question mark

The Right Tools for the Job: When to Use CEA and When to Use BCA for Evaluating Health Policies

As countries strive to achieve the Sustainable Development Goals, including attaining and sustaining universal health coverage, decision-makers are increasingly using economic evaluation to drive macro policy choices and more granular technology-focused decisions. In a recent study, we discuss what cost-effective analysis (CEA) and benefit-cost analysis (BCA) have in common and where they differ, especially in relation to universal health coverage, in terms of the perspective of the analysis and how the methodologies relate (or not) to the viewpoints of healthcare policymakers and budget holders in low- and middle-income countries (LMICs).