Continued growth of health care as a major sector of the U.S. economy has brought concern about whether health care services can be made more efficient and effective. Much of this concern is global in nature, relating to comprehensive issues in preventive and therapeutic services. Yet, examination of specific conditions provides insight into explicit approaches to achieving more effective care. The purpose of this report is to provide an overview of one health condition, asthma, and will 1) introduce the health economic concepts that define the costs of illness for asthma; 2) discuss the outcomes that are relevant to effective asthma management from a health systems perspective; 3) review the concepts underlying the study of cost-effectiveness of asthma care; and 4) examine the existing and emerging literature on the cost-effectiveness of asthma care.