Dictionary
The Dictionary provides concise definitions of health economics terms, arranged alphabetically for quick reference. Use it to understand unfamiliar terminology or confirm the meaning of a specific term.
A
- AbsenteeismSickness Absence, Work Absence
- Time lost from work due to illness, injury, or caregiving responsibilities, resulting in a direct, measurable cost to employers through lost productivity.
- Accountable CarePopulation Accountability, Shared-Responsibility Care
- A delivery and payment model in which providers accept collective responsibility for cost and quality for a defined patient population.
- Accountable Care ModelACO Model, Shared-Savings Model
- A delivery model in which providers accept collective responsibility for cost and quality for a defined population, sharing savings or losses.
- Accountable Care OrganizationACO, Accountable Care Organisation
- A group of providers voluntarily coordinating to take collective responsibility for the cost and quality of care for a defined population.
- Activity-Based BudgetingABB, Activity-Driven Budget
- A budgeting method that allocates costs according to the specific activities needed to deliver a service, rather than historical spending.
- Actuarial AnalysisActuarial Assessment, Insurance Risk Analysis
- The application of statistical methods to assess and quantify financial risk, such as the expected future cost of insurance claims.
- Actuarial ProjectionActuarial Forecast, Claims Projection
- An actuarial projection is a conditional estimate of future benefits, costs, revenues, or liabilities for a defined population or scheme using demographic, economic, and experience-based assumptions.
- Actuarial ValueAV, Metal-Tier Coverage Level
- A measure representing the percentage of average healthcare costs a health plan is expected to cover for a standard population.
- AffordabilityAbility to Pay, Financial Reach
- The extent to which a person, household or payer can meet the cost of needed health care within available resources without unacceptable financial hardship or displacement of other priorities.
- Affordability CriterionAffordability Standard, Budget Sustainability Criterion
- A standard judging whether a new technology's aggregate cost is sustainable within a health system's resources, considered separately from cost-effectiveness.
- Age RatingAge-Based Rating, Age-Banded Pricing
- A method of setting insurance premiums that varies price by an enrollee's age, reflecting generally higher costs for older groups.
- AI Diagnostic ValueValue of AI Diagnostics, AI Diagnostic Assessment
- An assessment of the clinical and economic value artificial intelligence diagnostic tools provide, covering accuracy, decision-making impact, and effect on costs.
- Ambulatory Surgery CentreASC, Day-Surgery Unit
- A specialist facility providing same-day surgical procedures not requiring overnight stay, typically at lower cost than an equivalent hospital procedure.
- Annual MaximumYearly Maximum Benefit, Maximum Annual Payout
- The highest total amount an insurance plan will pay toward an enrollee's covered costs within a year, beyond which costs fall to them.
- Annuity PaymentInstalment Payment, Installment Payment, Amortised Payment
- A reimbursement structure paying a treatment's total cost to the manufacturer in a series of instalments over time, rather than as a single upfront sum.
- Antibiotic StewardshipPrudent Prescribing, Stewardship Programme
- A coordinated set of strategies optimising antibiotic prescribing to improve outcomes, reduce resistance, and cut unnecessary healthcare costs.
- Antifungal EconomicsAntifungal Drug Economics, Economics of Antifungals
- The application of health economic evaluation to fungal infection medications, comparing older, cheaper agents against newer, often costlier antifungal treatments.
- Antihypertensive EconomicsAntihypertensive Drug Economics, Blood-Pressure Medication Economics
- The application of health economic evaluation to blood pressure medications, comparing drug classes and combinations on cost and long-term cardiovascular risk reduction.
- Antiplatelet EconomicsAntiplatelet Drug Economics, Economics of Antiplatelets
- The application of health economic evaluation to antiplatelet medications preventing clot formation, weighing cost and bleeding risk against reduced cardiovascular events.
- Asset SaleDistress Sale, Property Sale
- The sale of household property to cover healthcare costs, a coping strategy used when other financial resources are insufficient.
- Attachment PointRetention Level, Stop-Loss Threshold
- The specific threshold at which a stop-loss or reinsurance policy begins covering costs, with the insured responsible for costs below it.
- Attributed PatientAttributed Member, Assigned Patient
- A patient formally assigned to a specific provider for measuring cost and quality performance under a value-based payment arrangement.
- AttributionPatient Assignment, Provider Assignment
- The process of formally assigning a patient to a provider for measuring cost and quality performance under a value-based payment arrangement.
- Average Analysis MethodAverage Approach, Total-to-Total Analysis
- An analytic approach comparing an intervention's total cost to its total effect independently, rather than incrementally against a specific comparator.
- AWMSGAll Wales Medicines Strategy Group
- The All Wales Medicines Strategy Group, advising the Welsh government on the clinical and cost-effectiveness of newly licensed medicines for NHS Wales.
B
- Base Case AnalysisReference-Case Analysis, Central-Estimate Analysis
- The primary analysis using a model's central, best-estimate inputs, providing the main cost-effectiveness result behind a funding recommendation.
- Benchmark DevelopmentBenchmark Setting, Reference-Standard Development
- The process of establishing a reference standard against which actual performance, cost, or outcomes can be measured and compared.
- Benefit DesignInsurance Benefit Structure, Plan Coverage Structure
- The overall structure of a plan's covered services, cost-sharing, and utilisation management features, determining the actual protection it provides.
- Benefit GapDoughnut Hole, Coverage Shortfall
- A period or cost category for which an insurance plan provides reduced or no coverage, requiring the enrollee to pay a larger share than usual.
- Billed ChargesCharge Master Amount, Gross Charges, Charge
- The amount a provider bills for a service, which often bears little relation to actual cost or the amount an insurer ultimately pays.
- Borrowing For HealthHealth-Related Borrowing, Medical Debt Borrowing
- A coping strategy in which a household takes on debt to cover healthcare costs, an indicator of financial distress.
- Brand TierBrand Drug Tier, Branded Formulary Tier
- A formulary category for brand-name drugs within a tiered insurance design, typically carrying higher cost-sharing than generic drugs in a lower tier.
- Break-Even PointBreakeven Point, Zero-Profit Point
- The level of output or activity at which total revenue equals total cost, so an organisation neither gains nor loses money.
- Bronze PlanBronze Tier Plan, Bronze Metal Plan
- A US Affordable Care Act marketplace plan category with a relatively low actuarial value, around sixty percent, giving lower premiums but higher cost-sharing.
- Budget AmendmentBudget Revision, Budget Modification
- A formal revision to an approved budget made after the budget cycle has begun, usually to reflect unexpected cost or demand changes.
- Budget ConstraintSpending Limit, Fiscal Constraint
- The limit on combinations of goods, services or programmes that can be financed from a specified budget at given prices or costs.
- Budget Impact Model PharmaManufacturer Budget Impact Model, Pharma BIM
- A budget impact model developed by a pharmaceutical manufacturer to project a product's financial consequences, typically submitted alongside a cost-effectiveness analysis.
- Budget JustificationFunding Justification, Budget Rationale
- A formal explanation supporting a requested level of funding, setting out anticipated costs, expected outcomes, and the case for the resources.
- Budget PlanningBudgetary Planning, Fiscal Planning
- The process of estimating future costs and revenues and allocating resources accordingly before a budget cycle begins.
- Bundled Payment InitiativeBundled Payment Pilot, BPCI
- A formal government or payer programme implementing bundled payment arrangements for specific conditions, testing its effect on coordination and cost.
- Burden of IllnessIllness Burden, Disease Impact
- The total impact of a disease on individuals and society, covering mortality, morbidity, and economic costs, commonly quantified using DALYs.
C
- Cancer BurdenCancer Disease Burden, Oncological Burden
- The total impact of cancer on individuals and society, covering mortality, morbidity, and healthcare costs, commonly quantified using disability-adjusted life years.
U
- Unit CostResource Unit Price, Input Price
- The cost of producing or delivering a single unit of a good or service, such as the cost per hospital bed-day.
- Unit Cost EstimationUnit Costing, Component Cost Derivation
- The process of determining the cost of delivering a single, standardised unit of a healthcare service, such as an inpatient bed-day.
- Unrelated Future CostUnrelated Medical Cost, Future Unrelated Cost
- Future healthcare costs in added years of life gained from treatment that arise from entirely unrelated health conditions, a particularly unresolved methodological issue.
V
- Vaccine Cost-EffectivenessVaccine CEA, Immunisation Cost-Effectiveness
- An assessment of a vaccine's cost relative to its health benefits, typically expressed as cost per QALY or DALY averted.
- Value For MoneyVfM, Worth the Cost
- A general term describing whether a technology's health benefit is judged sufficient to justify its cost, cost-effectiveness analysis's central question.
- Variable CostVariable Expense, Volume-Dependent Cost
- A cost that changes in direct proportion to output or service volume, such as medical supplies used per patient treated.
- VRE EconomicsVancomycin-Resistant Enterococcus Economics, VRE Cost-Effectiveness
- The application of health economic evaluation to vancomycin-resistant Enterococcus, a bacterial pathogen resistant to a commonly used antibiotic class.
W
- Warfarin EconomicsEconomics of Warfarin, Warfarin Cost-Effectiveness
- The application of health economic evaluation to warfarin, accounting for its substantial ongoing monitoring cost against newer anticoagulants requiring none.