Jan 1, 2006 12:00 PM

Cost efficacy studies have an important place in drug evaluations: Many U.S. managed care organizations require cost effectiveness analysis of prescription drugs for formulary listing, and many countries require it for pre-market approval. Only in the last few years have economists started to examine the cost benefits and cost effectiveness of dietary supplementation. While still early-stage, these studies talk to health payers and policymakers in their own language, and sponsors hope they will earn a place in the health care system for dietary supplements by defining their role in helping to reduce the nation’s healthcare costs.

$20 Billion and Counting
In November 2005, the Dietary Supplement Education Alliance (DSEA) announced the results of its second economic impact study commissioned from health care consulting firm The Lewin Group. The study concluded that supplementation with omega- 3 fatty acids and lutein with zeaxanthin in adults over 65 could result in savings of $3.1 billion and $2.5 billion, respectively, over five years from reduced hospitalizations and physicians’ visits, as well as avoided transitions to dependence from vision loss. DSEA’s first economic impact study in 2004 showed daily use of calcium plus D could prevent 734,000 hip fractures and save $13.9 billion in health care costs over five years. Folic acid supplementation was projected to prevent 600 cases of neural tube birth defects yearly, saving $1.3 billion in lifetime medical costs over five years.

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