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Estimating Medical Costs for Regulatory Benefit-Cost Analysis: Conceptual Framework and Best Practices

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The U.S. Department of Health and Human Services (HHS) is required to assess the benefits and costs of its major regulations prior to promulgation. To support these assessments, in 2016 HHS issued its Guidelines for Regulatory Impact Analyses, developed under the leadership of its Office of the Assistant Secretary for Planning and Evaluation and its Department-wide Analytics Team. When developing these Guidelines, the Analytics Team recognized that HHS analysts needed more detailed guidance on estimating the medical costs of illness. This report supports the process of creating such guidance, building on the general framework described in the HHS Guidelines.

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