Consider the following treatments. You are currently in perfect health at age 30 but will die this year from heart disease if untreated. The existing treatment for heart disease is advil. This costs $1000 per year and gets you an additional 3 years of life (living until age 32, counting age 30 as the first year). Under this existing treatment, your quality of life weight decreases by 0.1 per year (e.g., for a quality of life weight of 0.9 at age 31). A new treatment for heart disease has been discovered, it's antibiotics. This costs $20,000 per year, and extends your life expectancy by 5 years (from age 30 to 34, counting the year at age 30 as the first year). It also maintains your current quality of life throughout all the years. Determine whether or not the new treatment is cost-effective using the $50,000 per QALY benchmark & use a discount rate of 3%.

Consider the following treatments. You are currently in perfect health at age 30 but will die this year from heart disease if untreated. The existing treatment for heart disease is advil. This costs $1000 per year and gets you an additional 3 years of life (living until age 32, counting age 30 as the first year). Under this existing treatment, your quality of life weight decreases by 0.1 per year (e.g., for a quality of life weight of 0.9 at age 31). A new treatment for heart disease has been discovered, it's antibiotics. This costs $20,000 per year, and extends your life expectancy by 5 years (from age 30 to 34, counting the year at age 30 as the first year). It also maintains your current quality of life throughout all the years. Determine whether or not the new treatment is cost-effective using the $50,000 per QALY benchmark & use a discount rate of 3%.