Which statement correctly contrasts CMA and CBA?

Which statement correctly contrasts CMA and CBA?

• A. CMA assumes outcomes are equivalent, while CBA measures outcomes in monetary terms
• B. CMA uses monetary outcomes; CBA uses outcomes equivalent
• C. CMA ignores cost differences; CBA focuses on time costs
• D. CMA and CBA both rely on QALYs

Answer: (A)

The main idea here is how each method values outcomes. Cost-Minimization Analysis is used when the effectiveness of the options is assumed to be the same, so the decision rests on which option costs less. Cost-Benefit Analysis, in contrast, converts all benefits and costs into monetary terms, so outcomes themselves are quantified in dollars to determine net benefit or a benefit-cost ratio. That is why the statement only about CMA assuming equal outcomes and CBA measuring outcomes in monetary terms is the best description. Why the other ideas don’t fit: CMA does not inherently use monetary outcomes; its focus is on costs when outcomes are equivalent. It does not ignore cost differences—rather, it compares costs once outcomes are established as equal. And while QALYs and other health outcomes can be incorporated in some analyses, CMA and CBA are not defined by relying on QALYs; that usage is more characteristic of cost-utility analyses.

The main idea here is how each method values outcomes. Cost-Minimization Analysis is used when the effectiveness of the options is assumed to be the same, so the decision rests on which option costs less. Cost-Benefit Analysis, in contrast, converts all benefits and costs into monetary terms, so outcomes themselves are quantified in dollars to determine net benefit or a benefit-cost ratio. That is why the statement only about CMA assuming equal outcomes and CBA measuring outcomes in monetary terms is the best description.

Why the other ideas don’t fit: CMA does not inherently use monetary outcomes; its focus is on costs when outcomes are equivalent. It does not ignore cost differences—rather, it compares costs once outcomes are established as equal. And while QALYs and other health outcomes can be incorporated in some analyses, CMA and CBA are not defined by relying on QALYs; that usage is more characteristic of cost-utility analyses.