A budget impact analysis is an essential part of a comprehensive economic assessment of a new product and is increasingly required, along with cost-effectiveness analysis, to support formulary approval or reimbursement. The purpose of a Budget impact analysis is to estimate the financial consequences of introducing a new product either on healthcare use (i.e. demand or resources) or costs (affordability).
In particular, a budget impact analysis predicts how a change in the use of a new product will impact the trajectory of spending on a particular health condition.
It can be used for budget planning, forecasting and for computing the impact of health technology changes on premiums in health insurance schemes. Such analyses are particularly useful for healthcare management interested in balancing short-term budget requirements.
