Climate Connections Climate change is boosting health care costs
Dec 5, 2025
Tracy Watts, a human resources professional with Mercer, reveals how climate change is increasing health care costs for businesses. She discusses the Climate Health Cost Forecaster, an online tool designed to help employers understand potential health costs due to climate impacts. Tracy emphasizes the importance of cost awareness, motivating companies to adopt safety measures for their workforce. Practical advice includes implementing cooling systems and hydration stations to protect employees from extreme weather, ensuring a healthier workplace.
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Climate Risk Raises Employer Health Costs
- Climate disasters like hurricanes, heat waves, and poor air quality drive more hospital visits and medical costs.
- The Climate Health Cost Forecaster estimates how extreme weather could raise employer health-care spending over the next decade.
CFOs Must Factor Climate Into Benefits
- CFOs should assess how rising climate-driven medical claims will affect their benefits budgets.
- Use targeted adaptation and forecasting to reduce unexpected medical bills and employer costs.
Quantify Costs To Drive Workplace Action
- Use the Climate Health Cost Forecaster to quantify how heat, air quality, floods, and hurricanes affect your company's health costs.
- Better cost understanding can motivate companies to adopt targeted worker protections like cooling and hydration stations.