Question

5. The cost-effectiveness of influenza vaccination is well established for persons aged 65 years and older. A study in the October 4, 2000 issue of the Journal of the American Medical Association considered cost-effectiveness and cost-benefit for healthy adults less than 65 years old. A randomized experiment was run. The treatment group received an influenza vaccination, while the control group received a placebo. Any favorable benefits of influenza vaccination last only for one flu season (a year). We consider the costs and benefits of influenza vaccination for 1,000 adults when per person

• The cost of vaccination (including lost work time) is $25.

• The cost of influenza illness (including lost work time) is $200.

• Influenza vaccination reduces the probability of getting influenza from 0.24 to 0.14.

(a) Perform a cost-benefit analysis of influenza vaccination. Does it favor vaccination?

(b) Use willingness-to-pay approach, what is the cost of influenza vaccination per case of flu avoided?

Answer 1