Nov 09 2026
COVID-19 Vaccines Were Cost Effective
One of my goals as a science communicator with a focus on healthcare is to increase the general understanding of how to think about clinical interventions. Just take a look at the many health-related videos on TikTok or other social media platform, contradicting standard medical advice. Many are based on false information, but they also almost uniformly do not think about public health measures or medical decisions properly. This disconnect between how experts think of intervention and how the public may perceive them was massively on display during the recent COVID pandemic.
Here is the quick primer. Think of interventions based upon their risk vs benefit. You cannot only consider risk, and you have to consider the risk vs benefit of all options, including doing nothing. On the diagnostic end, it is better to consider the predictive value of information, not just whether it is a sign or symptom. In the realm of public health there are more considerations, not just the risk vs benefit at the individual and the population level. Because we have limited resources, and often there are competing valid options, we also like to look at the return on investment (ROI) of interventions. A recent study does that for the COVID-19 vaccines – how much public and private money was spent for their development, manufacture, and distribution and what were the health and economic benefits?
The bottom line is that the COVID-19 vaccination programs had a massive ROI, they had a positive cost-benefit and cost effectiveness (in addition to a positive benefit to risk ratio). But the details are interesting, so let’s dive in.
There are many ways to slice and dice such data, and many ways to estimate the cost benefits of preventing illness. So the authors provided as much information as possible, without just choosing one analysis. I am going to present the data from the bottom up – from the most conservative estimates to the most complete estimates. First, the estimated cost of all stages of the vaccine programs (including the first year of delivery) was $79.4 billion worldwide. That is a high price tag, but what did we get in return? The most straightforward type of cost benefit from a healthcare intervention is avoided future healthcare costs. The authors estimated this by using estimates of hospitalizations avoided and the average cost of hospitalization in each country. That amounted to $222 billion. So based on that maximally conservative estimate the vaccine programs were very cost-effective. Continue Reading »

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