# Digital Cognitive Behavioral Therapy for Chronic Insomnia in South Korea: Cost-Effectiveness Analysis Using Decision Tree and Markov Modeling Based on a Secondary Analysis of a Randomized Clinical Trial

## TL;DR

A digital CBT app for insomnia in South Korea is cost-effective compared to traditional treatments, especially when considering societal benefits like reduced workplace accidents and productivity loss.

## Contribution

This study provides the first cost-effectiveness analysis of a domestically developed digital CBT app for insomnia using Korean clinical and economic data.

## Key findings

- Digital CBT via Somzz was cost-effective from a healthcare system perspective with an ICER of KRW 8,719,727 per QALY gained.
- From a societal perspective, digital CBT was cost-saving due to reduced healthcare use and productivity losses.
- Sensitivity analyses confirmed the robustness of digital CBT's cost-effectiveness under various scenarios.

## Abstract

Insomnia is a prevalent sleep disorder characterized by difficulty initiating or maintaining sleep and is associated with substantial health and economic burdens. Although cognitive behavioral therapy (CBT) is recommended as the first-line treatment, pharmacotherapy remains widely used despite adverse effects and significant indirect costs related to impaired productivity and workplace safety. Digital therapeutics delivering CBT through mobile platforms have emerged as scalable alternatives to improve access and outcomes. Somzz is a commercially available, domestically developed digital therapeutic that delivers CBT-based interventions for insomnia via a mobile app.

This study evaluated the cost-effectiveness of Somzz compared with conventional insomnia treatment combining CBT and pharmacotherapy from both health care system and societal perspectives in South Korea.

A decision-analytic model integrating a short-term decision tree with a Markov model was developed to compare costs and outcomes of digital CBT via Somzz versus conventional care in 2023. The model simulated a 27-week time horizon (three treatment cycles) and applied an annual discount rate of 4.5%. Clinical inputs, including remission probabilities and health utility values, were derived from a published randomized clinical trial comparing digital CBT delivered via Somzz with sleep hygiene education. Additional inputs, including health care resource use and unit costs, were obtained from published literature and national sources. Health outcomes were measured in quality-adjusted life years (QALYs). The cost analysis included direct medical costs and indirect costs related to absenteeism, productivity loss, and workplace accidents attributable to insomnia. Incremental cost-effectiveness ratios (ICERs) were estimated in 2023 South Korean Won (KRW). Deterministic one-way and probabilistic sensitivity analyses were conducted to assess uncertainty.

From a health care system perspective, digital CBT via Somzz resulted in modestly higher costs and improved health outcomes compared with standard care. Over approximately 6.5 months, Somzz generated an additional 0.0092 QALYs per patient at an incremental cost of KRW 79,691 (US $61.87), yielding an ICER of KRW 8,719,727 (US $990,883) per QALY gained. This estimate was well below the Korean willingness-to-pay threshold of KRW 30,000,000 (US $23,192.91) per QALY. From a societal perspective, digital CBT was cost-saving, producing a negative ICER due to reductions in health care utilization, workplace accidents, and productivity losses associated with higher remission rates. Sensitivity analyses identified intervention costs and remission probabilities as key drivers; however, digital CBT remained cost-effective across all scenarios under willingness-to-pay thresholds of KRW 30,000,000 and KRW 15,000,000 per QALY.

Digital CBT for insomnia offers favorable clinical and economic value in South Korea. Using Korean clinical trial data and locally relevant societal cost inputs, this study provides policy-relevant evidence supporting early integration of digital CBT into routine insomnia care, employer health strategies, and national digital health policy.

World Health Organization International Clinical Trials Registry Platform KCT0007292; https://trialsearch.who.int/Trial2.aspx?TrialID=KCT0007292