Vaccines have long been studied for their contribution to health and current and future labor productivity, with many studies concluding that vaccination, at any age, creates economic value. In addition to preventing a staggering human cost of disease, vaccines have resulted in trillions of dollars in direct and indirect societal savings. In a new research, Director of Health Care Policy Michael Baker discusses the significant economic impact of vaccines due to their effectiveness in preserving human capital to maintain a capable workforce.

Key Points:

• The creation, development, and deployment of vaccines – a U.S. federal priority since the 1960s – has been one of the greatest health care achievements in the world.
• Routine childhood immunizations in the United States from 1994–2023 are estimated to have prevented around 508 million cases of illness, 32 million hospitalizations, and more than 1 million deaths; adult vaccinations have a significant role in safeguarding public health and considerable economic benefits through reducing absenteeism, addressing presenteeism, and enhancing overall labor productivity.
• For child vaccinations, this prevention results in approximately $540 billion in direct medical cost savings, with almost $2.7 trillion in total societal savings due to illness prevention, which means that every $1 spent on childhood immunizations results in a savings of approximately $11; in adults, one study calculated that an adult vaccination program can return up to 19 times its initial investment.

Read the analysis.