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You are at:Home » Climate change will cost your health plan. Analysts want to know how much.
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Climate change will cost your health plan. Analysts want to know how much.

Machinery AsiaBy Machinery AsiaJune 12, 2025No Comments8 Mins Read
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Publisher Note: This is the first article in a two -part immersion series on the effects of climate change on workers’ health. The second part will focus on workplace security strategies and the growing push of state and federal legislators to establish heat safety standards.

Sixteen million dollars every hour. That is the Global cost of climate change Between 2010 and 2019, according to New Zealand researchers, a figure amounts to average $ 143 million annually. By 2050 the annual cost could increase to $ 3.1 trillion.

These numbers incorporate a data load. But when Tracy Watts, a leading member and national leader of U.S. health policy in the Mercer Human Resource Consulting firm, and their colleagues sought accurate data that would capture the amount of climate changes that would cost the typical healthcare plan, which was largely empty.

There is historical data that show an increase in natural disasters that are thought to be aggravated by climate change, said Watts. “Most of the focus that focuses on sustainability, which is fantastic, but we wondered what impact this has on human capital. And there was really nothing.”

Thus, Mercer and the National Commission on Climate and Work, an initiative of the Health Action Alliance, consider the development of an online tool, Previous with the cost of climate healthTo determine long -term health costs associated with the “dangers” related to the key climate, as Watts called them, which could take into account the industry, location and size of an employer’s workforce.

Last month, the prognosis combines meteorological data and epidemiological research with the Mercer health claim database for projects for a period of ten years. It is honored in four specific dangers (extreme heat, poor air quality, floods and hurricanes) because developers felt that they could make the strongest correlations between these particular scenarios and the health of an individual, said Watts.

The tool talks about a real informative need, continued, citing the overall mercer survey by the end of 2024, which found that 77% of employees said that they or a family member had been adversely affected by climate events or extreme climate. Specific problems range from increasing the cost of life to a decrease in the ability to access care for sleeping difficulty due to high temperatures.

House destroyed by Hurricane Helene flooding North Carolina

According to researchers, four -wheeled men pass a house damaged by the storm along Mill Creek after Hurricane Helene on September 30, 2024, at the old fort, extreme weather events such as floods can be related to various medical conditions.

Sean Rayford through Getty Images

A multifaceted “threat multiplier”

Using scientific journals, mercer and their co-developers identified specific medical conditions that could be linked to each of the four dangers of the prognosis. The process is simple in many examples: extreme heat can increase dehydration incidents, heat stroke and cardiovascular and respiratory diseases, while poor air quality has a connection similar to respiratory ailments and allergic reactions.

But there is even more conditions for which the tool has, said Watts. Extreme heat alone can lead to people who are pregnant Primatuously enter the jobAnd it can also have a more detrimental effect on workers’ dependents, especially children. Floods can cause physical injuries and diseases transmitted by vectors and water.

Climate change promotes worries of life and health worldwide

% of the world respondents who said that they or a family member saw any of the following affected due to climate change or extreme weather events

Climate change affects physical health and general well -being, Ellen Kelsay, president and CEO of the Business Group on Health. He is also a “threat multiplier,” he added, because it can aggravate existing health problems, especially for risk populations, and can lead to greater trauma and psychological stress.

“Extreme events related to climate such as hurricanes, wildfires and floods can displace people from their homes, causing great distress and difficulty in seeking care services,” said Kelsay. “These events are also related to acute interruptions such as electrical interruptions and supply challenges.”

There are also long -term health problems associated with heat and environmental stressors, such as chronic kidney diseases and worsening conditions such as asthma and diabetes, Jessica Martinez, executive director of the National Safety and Safety Council of the ORN, a workers’ -led law group, in an email.

Martinez said that there can be large disparities between workers in different environments, and those with low salary and risk occupations in construction, agriculture, hospitality and manufacturing industries are usually subject to extreme conditions. He said that the workers themselves can have access to basic guarantees such as water, rest and shadow.

“The employees of these jobs are disproportionate people of colors and immigrants, and many do not have access to healthcare, much less, preventive care,” said Martinez. “Even when looking for medical help, suppliers rarely wonder if symptoms such as dizziness, fainting or chronic pain are related to their work. So conditions do not take into account, not diagnosed and not treated. This systemic failure maintains invisible suffering and allows dangerous conditions to continue without registering.”

Farm bill

A agricultural worker works in a field on August 11, 2004, near Bakersfield, California, workers in industries such as agriculture are especially vulnerable to health -related health risks, as they generally have no access to climate environments.

David McNow through Getty Images

Entrepreneurs overlook the impact on the health of climate change

Health costs have historically been a starting point for organizational budgets and is unlikely to change in the near future, with a recent analysis of the WTW survey called recent cost increases “unsustainable. “However, even when employers are struggling with the expense of their plan, Watts said that some could overlook the contributions of climate change.

“Any [chief financial officer] An organization knows what their health benefits are: it is a large number. They know how much it increases every year, “Watts said. Even if the effects related to the climate provide a single percentage point to increase spending,” this is a significant amount for an organization and a CFO. “

Martinez said he cares about the same way that the company’s leaders do not take into account the human costs of climate change in their fiscal planning, even when extreme weather events create more dangerous and potentially fatal working conditions for some workers. The heat is a main focus as that Nine of the warmest ten years of the record In the United States Contigus have occurred since 1998, but Martinez said that best basic safety practices are not always implemented to protect vulnerable workers.

“We often see a lack of investment in programs and solutions that can reduce the risk of heat diseases, such as access to water, rest, shadow and changes in working hours,” he said. “Do not act not only at risk the life of workers, but also involves a turn -term turnover, burning and damage that directly affect business sustainability.”

Watts said that the costs of the mercer prediction vary greatly according to the characteristics of the individual employer, said Watts, and some organizations project a minimum cost increases below 1% of global spending. But he said that there have been some amazing revelations in terms of which the North -American cities are more vulnerable; “It will not always be what you think will be.”

For example, the company said in a statement This air quality was the highest risk of all Portland industries, Oregon, while the extreme heat presented the greatest concern for Hartford, Connecticut and Burlington businessmen, Vermont. Watts said that the most vulnerable American cities for climate-related risks include Boston, New York and Pittsburgh.


“This is not the insurance plans sponsored by the employer, they are the workers themselves.”

Jessica Martinez

Executive Director of the National Council of Occupational Safety and Health


In an industrial way, agriculture and construction are two of the most vulnerable spaces, as workers usually have a protected environment during working hours, Watts said, while lower risk occupations usually have access to climate -controlled environments.

Health insurance plans may not be ready to deal with the climate -related risks in part because health providers are often not formed to recognize when factors such as heat contribute to an employee’s illness, said Martinez. He added that the United States does not have a system to connect exposure to the heat workplace, for example, to public health data “significantly”.

Martinez said that entrepreneurs should try to deal with preventive climate risks, including through the implementation of healthcare safety rules and healthcare access that reduces financial barriers, instead of systems that facilitate the turnover of patients after being sick. It was also warned to focus on the health plan when it came to formulating the response to an organization’s climate risk.

“We need to be honest where the real load falls,” said Martinez. “This is not the entrepreneur -sponsored insurance plans, they are the workers themselves. They are the ones who pay for their pocket, they jump into silent care or suffering when their symptoms are fired or misgnoied. Many workers do not even report heat -related diseases because they fear losing hours or their work.”

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