Climate change will adversely impact health and increase health care costs

January 15, 2025

This is the fifth in a series on issues that will impact employer-sponsored health insurance in 2025. Links to previous posts are at the bottom. Our thoughts are with those in the Los Angeles area who have been coping with the devastating and tragic fires.

Global Average Surface Temperature

Source: Climate.gov LINK

2024 was the hottest year in recorded history. Wildfires exposed much of the country to dangerous air pollution, and weather events related to global warming caused widespread flooding in the U.S. and globally, killing and displacing many. Greenhouse gas emissions continue to increase, and global temperatures are set to continue to rise.

While the incoming Administration is skeptical of climate change, the U.S. and other countries have made real progress in transitioning from fossil fuels, and renewable energy is already in many instances less expensive, so decarbonization is likely to continue.

Climate change adversely affects physical health, with more people likely to suffer from heat-related injuries and heart and lung disease. Climate change can also increase mental health needs, both from “climate anxiety” and due to employment and life changes caused by global warming.

Implications for employers:

• Employers should first seek to protect the health of their employees, through adequate cooling, air filtration in the workplace, and flexibility with work hours in months of peak heat.

• A multidisciplinary team, including legal counsel, facilities and human resources, can identify climate risks and potential mitigation.

• Many companies support their employees through emergency funds if they are impacted by climate emergencies.

• Climate changes can increase non-health care costs, like homeowner’s insurance and rent, increasing the risk of financial insecurity.

• Adequate access to mental health services will remain especially important to meet member needs.

Here’s a link to an article we wrote in October 2023 about employer response to climate change.

Thanks for reading. You can find previous posts in the Employer Coverage archive

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1. Medical costs will continue to rise

1. Employers and health systems will continue to face labor shortages

2. Regulation and policy changes could reshape employer-sponsored health insurance

3. Artificial intelligence will continue to advance in health care delivery and administration

4. Climate change will adversely impact health and increase health care costs

5. Mental health and substance use will continue to require employer attention

6. Infectious disease will continue to pose serious risks