Vaccine Myth: Vaccines are Just Money-Makers for Big Pharma & Doctors

This blog post is adapted from our Parents’ Guide to Children’s Vaccines with updated links and resources, and contributions from Dr. Joel Amundston, M.D. and Dr. Ryan Hassan, M.D.

Perhaps you’ve found our blog as someone who’s unsure about vaccines, or you’re gathering more information to help dispel misinformation about vaccines.

There’s a lot of inaccurate information online that can be hard to identify, particularly because passionate people can sound very compelling, even if the source of their information is unreliable.

In the next few months, we’ll focus on debunking popular myths about vaccines. One of these myths is that vaccines are just a way for pharmaceutical companies and doctors to make money.

Do pharmaceutical companies make big profits from vaccines?

Vaccines are created and tested by pharmaceutical companies, for-profit organizations that are designed to make money. Yet, the truth is that childhood vaccines are among the least profitable products for big pharma. These companies make the lion’s share of their profits by selling drugs that treat diseases and health conditions.

For example, sales of the Sovaldi drug for Hepatitis C — just one treatment by one pharmaceutical company for one disease sold almost entirely in the United States — exceeded more than $10 billion in one year. Annual sales for a drug like Viagra pull in close to $2 billion annually. The total pharmaceutical revenue in the US is a staggering $482 billion per year.

In comparison, the total revenue possible per year if all childhood vaccines were given to every child born in the US from their birth until 18 years of age would be only $8 billion - equal to only 1.7% of pharma sales. So, even vaccinating every child with every vaccine to prevent multiple illnesses across the country would bring in less revenue than one single drug is capable of bringing in to treat a single infection in some people.

Regardless of how profitable a product is, however, the most critical focus to guide patients on the use of a product should be on its clinical risks and benefits, including whether vaccines are continually tested, safe, and provide protection against diseases, which they do. (See more on vaccine safety here.)

Another point of comparison: Alternative Medicine

Another illuminating example is the alternative medicine market, which includes homeopathic remedies (e.g., Arnica, elderberry syrup, and Zicam) and various supplements, powders, and teas.

This is a huge $34 billion industry in the US, with only one-third of the treatments tested, yet isn’t as readily labeled as a money-maker.

In short, if pharmaceutical companies merely wanted to increase their profit margins, they would make more money by focusing such efforts on developing and selling drugs, or even selling alternative medicine.

Do doctors profit from vaccines?

Another concern that some have is whether doctors push vaccines on patients because they get paid extra by insurance companies to promote them.

In the United States, research shows that pediatricians make little or no money when giving vaccines. In fact, some doctors make less money when providing vaccines because the administrative costs (nursing time, billing time, cost of supplies, etc.) exceed the reimbursement they receive from insurers and health plans.

Some insurance companies do provide a “quality of care” bonus to doctors if they meet an array of health-promoting measures such as regular well child checks, appropriate asthma management, and up to date immunizations. This incentive isn’t big enough to make doctors change their clinical recommendations, but rather designed to prevent low vaccination rates caused by other factors such as forgetting to check a child’s immunization record. The insurance companies make this decision based on the cost-benefit analysis: Patients who are vaccinated and have regular checkups are less likely to need expensive, disease-related care in the future. Without understanding all of the details and nuances of the bonus, it can sound like doctors are secretly profiting, but the truth is that most doctors’ salaries are not impacted much at all by vaccines.

Dr. Ryan Hassan, a local pediatrician, and volunteer for Boost Oregon, says, “I became a pediatrician because I want to keep kids healthy. If my primary goal were instead to make money, I would have chosen a different, more lucrative specialty.”

Dr. Joel Amundson, member of Boost's Medical Advisory Board, adds, “I am passionate about evidence-based medical care for children. I am an advocate for parents to understand the medical choices that they have for their children and feel empowered to make choices they feel great about.”

Doctors go through years of training and are experts in their field(s). They make recommendations based on experience, scientific research, and the benefits of vaccines.

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A Parent's Story: I’m a Pediatrician, and I Vaccinate My Kids