Using Medicare FFS claims data and county-level vaccination rates, we estimate savings of about $2.6 billion from reduced Medicare hospitalizations associated with COVID-19 vaccinations in early 2021. These cost savings reflect 107,000 fewer Medicare (FFS and Medicare Advantage) COVID-19 hospitalizations during this period, compared to projections if no COVID-19 vaccines were available during that period. Hospitalization cost savings from this early vaccination period were nearly large enough to offset the cost for approximately 67.7 million single-dose COVID-19 vaccines, or 31.2 million two-dose series, assuming an average cost of $40 per dose.
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