How environmental regulation rollbacks could affect employer-sponsored health insurance
February 25, 2026
Summary: Recent rollbacks of environmental regulations are likely to increase rates of respiratory and other illnesses and increase total medical spending over time.
The Environmental Protection Agency and the administration have announced multiple actions to decrease regulation of environmental pollution this month, including
Elimination of the “endangerment finding,” which eliminates the EPA’s ability to regulate greenhouse gas output from power plants and vehicles. The Administration announced last month that it would no longer consider the value of lives saved from air pollution regulations.
Elimination of regulations that strictly limited emission of mercury and other metals from power plants. Mercury is a neurotoxin, associated with decreased intelligence and increased aggression in children and elevated risk of heart disease in adults.
Encouragement of production of glyphosate (Roundup), an herbicide (weed-killer) associated with an increased risk of non-Hodgkin lymphoma.
Prohibited the closure of coal-fired power plants which were scheduled to be retired
Ordered the Defense Department to purchase power from coal-fired power plants, even if this increases costs.
These actions are likely to lead to more adverse health outcomes in the U.S., and will eventually cause an increase in medical expenses borne by employer-sponsored health plans.
Impact of changes in carbon (greenhouse gas) regulations:
Previous EPA estimates suggest that each $1 spent on complying with air pollution regulations generated approximately $30 in economic benefit. The EPA estimated that the Clean Air Act amendments prevented 230,000 deaths and 2.4 million asthma exacerbations in 2020. Extending the lifespans of older coal plants may increase energy costs and contribute to higher rates of illness, which in turn could increase total medical spending.
Greater exposure to air pollution has also been linked to higher hospitalization rates for influenza, particularly in years when the flu vaccine is a poor match for circulating strains.
Here’s a review of the economic impact of air pollution from Econofact.
Impact of mercury regulation rollbacks:
Harvard researchers estimated that decreases in mercury emissions due to power plant regulations prevented an estimated 380,000 cases of ischemic heart disease and 160,000 cardiovascular deaths between 2008 and 2020. The power plant regulations also prevented 60,000-100,000 women of childbearing age (16-49) from having high blood mercury levels, and prevented 3,700 to 5,600 infants annually from being born with high blood mercury levels.
Impact of glyphosate regulation rollbacks:
Treatment for Non-Hodgkin lymphoma can cost $10,000–$20,000 per month during active therapy. Advanced treatments such as CAR-T therapy may cost as much as $300,000 per course.
Other potential risks to employers
Increased exposure to air pollution may also lead to higher absenteeism, lower productivity, and more disability claims. Higher greenhouse gas emissions will contribute to rising temperatures, increasing heat-related risks for employers with workers in warmer regions.
Implications for employers:
Some of these Administration actions will be subject to legal review, and might not be implemented as announced.
Environmental exposures are likely an under-recognized driver of future medical costs.
Increased pollution exposure is associated with worse health outcomes and is likely to raise medical costs over time.
Employers may wish to continue reducing their carbon footprint, even in the absence of federal regulation or subsidies. In addition to environmental benefits, such efforts may reduce long-term health risks and align with employee and investor expectations.
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