Cost-effectiveness of new treatments

Kaiser Health News published an interesting rumination on the federal government's recommendation for adults to get the recently approved updates to Pfizer's and Moderna's COVID vaccines. While people believe the vaccine to be "safe and effective," Kaiser Health News raised the question of whether the new vaccine is cost-effective given its incremental benefit. In this particular case, the article mentions a 5% benefit, but since US citizens will generally only want the updated vaccine, the government's recommendation might cause a recently announced $3.2 billion acquisition of the original vaccine to be obsolete. Apparently, even several members of the CDC advisory committee that voted for the recommendation had concerns about the lack of data suggesting a material improvement.

While this is a specific example, there is a broader issue that people generally lack information as to whether a specific updated drug or treatment is worth the incremental cost. Pharmaceutical companies frequently update a drug, but without data about how much more effective the newer drugs are and how much extra they will cost, prescribers and the general public might not be able to make an informed decision about whether the more expensive drugs are worthwhile to purchase.