Which statement correctly describes a drawback of cost minimization analysis?

• A. It relies on time series forecasting
• B. It assumes that outcomes are equivalent and focuses only on cost
• C. It requires quantifying outcomes in natural units
• D. It uses randomized trials to compare costs

Answer: (B)

Cost minimization analysis rests on a simple idea: the outcomes of the competing options are assumed to be the same, so the only thing that matters is cost. Because of that, its main drawback is that it ignores any differences in effectiveness, quality, or value. If one option delivers better health benefits or utility, CMA could mislead you into choosing the cheaper option despite lower overall value. In analyses that compare value rather than just price, outcomes are explicitly weighed against costs, which CMA does not do. The other statements describe things like forecasting, measuring outcomes in natural units, or trial designs, which aren’t defining drawbacks of CMA and aren’t what CMA relies on.