Cost Estimation Methods in Health Economic Evaluation

The article gives an overview of cost estimation methods in health economic evaluation. The process of cost estimation - identification, quantification, and valuation of resource consumption is described from the perspectives of society and statutory health insurance (SHI). The following aspects are discussed: 1. Should productivity costs (due to morbidity and/or mortality) be considered on the cost side or the effect side of a health economic evaluation, 2. which costs in life years gained (related or all) should be considered, 3. when should a precise micro-costing approach be applied and when is a macro-costing approach sufficient, 4. when (and how) should administered prices be adapted to opportunity costs, 5. how should productivity and time costs be valuated, 6. why should costs be discounted and what is the right discount rate, 7. which differences do exist between cost analyses from societal and SHI perspectives, 8. are there any proposals for standardisation of cost valuation.