#United States #New York #Health Action Alliance #Mercer #Climate Health

Navigating Healthcare Costs Amid Climate Change

In today's rapidly changing climate, employers face an increasing burden of healthcare expenses tied to climate-related risks. A recent collaboration between Mercer, a division of Marsh McLennan, and the National Commission on Climate and Workforce Health has resulted in an innovative tool known as the Climate Health Cost Forecaster. This cutting-edge digital solution enables employers to estimate the long-term financial implications of climate-driven health challenges on their employees.

The Impact of Climate on Health Costs

Extreme weather events, such as heatwaves, poor air quality, flooding, and hurricanes, can significantly affect individual health, leading to a range of direct and indirect health issues. These range from physical ailments, like heat stroke, to mental health conditions such as anxiety and depression. The economic impact of such events can be staggering, resulting in costly repercussions for both communities and businesses attempting to recover from disasters.

Mercer’s new forecasting tool aggregates weather data, epidemiological studies, and proprietary health cost modeling to provide tailored projections for various industries and geographical locations. By employing a data-driven approach, this tool aids business leaders in understanding how climate-related factors can influence healthcare expenses within their workforce.

Key Findings and Benefits

The Crystal Clear findings from the Forecaster indicate that employees working in climate-controlled environments typically incur about 40% lower healthcare costs than those working in non-climate-controlled settings. Industries such as agriculture, utilities, and construction are particularly vulnerable, facing healthcare cost risks that can be up to twice as high due to climate impacts.

Susan Potter, Mercer's President for the U.S. and Canada, remarked, "Employers are now equipped with data that clearly identifies the financial risks associated with climate-related health challenges. Despite 77% of workers claiming they have felt the effects of extreme climate events, only 4% of employers have evaluated the risks that their employees face. The Forecaster links extreme weather, worker risks, and escalating healthcare costs in a way that allows businesses to prioritize health and enhance resilience."

Understanding Regional Risks

The tool also unveils critical insights into region-specific risks. For instance, businesses in Portland, OR, may find that air quality emerges as a top concern, while in Hartford, CT, and Burlington, VT, it could be extreme heat. These varying risks underscore the necessity for employers to understand the unique climate challenges their teams face, allowing for more informed decision-making.

Tracy Watts, Mercer's U.S. Leader for Healthcare Policy, emphasizes that understanding these risks is vital to addressing them effectively: "You must know the risk to address the risk."

Looking Ahead

With the increasing frequency of billion-dollar disasters and the impending hurricane and wildfire seasons, the launch of the Climate Health Cost Forecaster comes at a crucial time. David Leathers, the Climate Health Program Director at HAA, expresses pride in this innovative initiative, which aims to illuminate the financial ramifications of extreme weather on workforce health.

Employers keen on utilizing the Climate Health Cost Forecaster can access the asset online, paving the way for a more strategic approach to health management and climate preparedness. To learn more about the efforts of the National Commission on Climate and Workforce Health, individuals are encouraged to visit ClimateHealthCommission.org.

Conclusion

As climate risks continue to escalate, leveraging predictive tools like the Climate Health Cost Forecaster will be essential for employers looking to safeguard their workforce's health and minimize financial repercussions from climate-related challenges. The combination of understanding local risks and addressing them proactively can empower businesses to foster a healthier, more resilient workforce in the climate-altered future ahead.