Almost precisely argued.
If it is purely an economic equation let us weigh the benefits of universal vaccination against chicken pox against the losses from the occurence of chicken pox. How much does is cost to hospitalise these children and what is the cost , in purely economic terms, of their death? As Rolfe has said the economics may point to universal vaccination.
But is there not an emotional cost?
The severe injury of a child or even its death produces a dysfunction in society that is immeasurable. This is the cost/benefit we should be considering, not purely the numbers ascribed by an accountant or a mere engineer.
I like the "mere engineer" bit at the end
Let's do some more calculations:
Assume 90% of individuals by the time they are 16 have had chickenpox.
There are about 12 million children in the UK 0-16 years old, so 90% is 10.8 million. Every year, 10.8 million / 16 = 675,000 children get chickenpox. Just under 7 die, so that works out to a child with chickenpox has 1 in 100,000 chance of dying, with no varicella vaccination programme.
1 in 100,000 chance of dying.
Check out this page for other yearly risks (US again):
http://www.nsc.org/lrs/statinfo/odds.htm
Pedestrian: 1 in 49,139
Car occupant: 1 in 19,216
Fall on and from stairs and steps: 1 in 179,278
Accidental drowning and submersion: 1 in 88,772
Inhalation and ingestion of other objects causing obstruction of respiratory tract: 1 in 91,340
Accidental poisoning by and exposure to noxious substances: 1 in 14,017
Complications of medical and surgical care and sequelae: 1 in 101,858
Assault by firearm: 1 in 25,263
How much does cancer cost to treat? How about heart disease? All those children who don't die of chickenpox end up having to be treated for these and other illnesses. Does the cost of these and other (expensive) treatments get added on to the cost of saving their lives?
As for the hospital admissions: Let's use 1 in 500 cases:
1350 children admitted to hospital each year for chickenpox.
0.85 per 100,000 children have serious complications, giving 102 children.
So 1350-102 = 1248 children admitted to hospital each year for chickenpox do not have serious complications.
Please don't play the emotional cost card. You don't bat an eyelid when 100 times that number of children are dying around the world for lack of such luxuries as food and water.
Life in the West has become so safe that our public health researchers have to dig around in the noise to find things to protect us from.