Changes to NICE’s cost-effectiveness thresholds take effect
NICE has implemented new measures to evaluate the cost-effectiveness of medicines, following a policy change that aims to give patients improved access to treatments.
These changes follow the government’s decision to increase the thresholds that NICE can use in technology appraisals to £25,000 - £35,000 per quality-adjusted life year gained.
When we evaluate a new medicine or piece of tech for the NHS to use, we use quality-adjusted life years (QALYs) to estimate the health benefits. The QALY combines both the length of life gained from a treatment and its impact on quality of life. We use QALYs to compare new potential treatments with the treatment already available through the NHS.
In a health service funded through general taxation, it is right that government decides on the level of health and medicines spend. The new thresholds aim to provide better outcomes for patients, while also supporting the life sciences sector and broader economy.
Our independent appraisal committees will use the new thresholds immediately, and these changes will be applied to both new and on-going medicines evaluations."
The NICE manual has been updated to reflect the government direction.
NICE currently recommends 91% of the medicines we evaluate, around 70 a year. Our analysis suggests that increasing the standard threshold will allow us to approve an additional 3 to 5 new medicines or indications per year, which we know will be welcomed by those patients who will benefit.