Health economics analysis is a process that is concerned with health care. The analysis gauges the effectiveness and the efficiency of the consumption and production of concerned health policies. The study seeks to inform about the health care systems that deal with such general behaviors that affect the health like smoking or alcohol consumption. This is actually done so as to measure the rise or fall of the health economics concerned with health products.

There are certain factors that need to be properly accommodated within the analysis such as barriers to entry, asymmetric information, third agent and externalities. The analysis must be done after consultation with a doctor and a medical agent as well as the prices of the services and products concerned must be taken into consideration. It is important to ensure that the cost and expenses are kept in account of during the analysis. The financial outcomes for both patient and the insurance policy provider are important to understand.

Sample Health Economics Analysis

The Health Wealth Foundation has hired GNR Criteria Group to analyze the cost shift of the 1233 Health Care Policy introduced in the year 2010.


Initial Cost: $4,000 premium per annum.

Current Cost: $5,500 premium per annum.

Policy Summary: The stated policy deals with specific cardiovascular diseases barring myocardial infection. The treatment that can be opted for must be within $50,000 barring the medications. Separate policies need to be applied for medications and other external examinations that are not subjected to this policy.

Cost Impact on Consumers:

  • A sudden rise in cost has led to a decrease in the number of consumers by 45%.
  • The advantages that were part of the initial policy have remained the same with the increase of premium.
  • There has been a decrease in the time slot for payment from a gap of six months to three months.

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