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congressionalBudgetoffice
NonprtisanAnaysisforthecongress
EffectsofExtremeTemperatures
FromClimateChangeontheMedicare
Population:PreliminaryResultsMay31,2024
PresentationattheAssociationofEnvironmentalandResourceEconomistsSummerConference
JaredJageler,DavidAdler,NoeliaDuchovny,andEvanHerrnstadt
MicroeconomicStudiesDivisionandHealthAnalysisDivision
Forinformationabouttheconference,see
/summer
.
Introduction
Climatechangeisexpectedtoincreaseaveragetemperaturesandaffectthe
frequencyofextremelyhotandcolddays.
Theneteffectsofthosechangingtemperaturesonhealthandfederalhealthcare
spendingareuncertain:
.Extremeheatandcoldareassociatedwitharangeofnegativehealtheffects.
.Spendingandutilizationcouldincreaseordecreasedependingonhowhealtheffectsandbehaviorrespondtoextremetemperatures.
.Mortalitycouldincrease(becauseofmorehotdays)ordecrease(becauseoffewercolddays).
Thoseeffectsmaybepronouncedamongelderlypopulations,withimplications
forthefederalbudgetrelatedtoMedicareenrolleesandspending.
Theinformationinthispresentationispreliminaryandisbeingcirculatedtostimulatediscussionandcriticalcomment.1
ResearchQuestions
TheCongressionalBudgetOfficeusesacompletenationwidedatasetofMedicarebeneficiariestoexaminehealthcareutilizationandspendingaswellasmortality.
Inparticular,CBOinvestigatesthesequestions:
.Whatistheeffectofextremetemperaturesonemergencydepartment(ED)visits,EDspending,andmortalityamongMedicarebeneficiaries?
.Howwillthoseoutcomesbeaffectedbyprojectedtemperaturesresultingfromclimatechange,afterincorporatingtheeffectsofadaptation?
Thisresearchispreliminary,andtheresultsaresubjecttochange.
Adaptationreferstohowareaswithdifferentclimatesrespondtoincreasingtemperaturesdifferently,suchasbyinstallingmoreairconditioning.2
RelatedResearch
.Nationwidestudiesontheeffectsofclimatechangeonmortality
-Heutel,Miller,andMolitor(2021)
-Carletonandothers(2022)
.Otherrecentresearchonhealthcareutilization(EDvisits)andmortalityinCaliforniahospitals:
-White(2017)
-Gouldandothers(2024)
.AstudyestimatingtheeffectsofexposuretoparticulatepollutiononsimilaroutcomesintheMedicarepopulation
-Deryuginaandothers(2019)
3
Overview:EconometricEstimates
Veryhotdayscausemore
EDvisitsandhigherED
spending.Bycontrast,verycolddayscauseareductioninEDvisitsandasmaller
reductioninEDspending.
Mortalityishigheronboth
veryhotandverycolddays.
Thecurrentestimatesshowtheeffectofweatheronlyonoutcomesforthesamedayandthefollowingtwodays,whichcouldexcludesome
delayedandcompensatoryeffects.
CBOplanstoexplorelongerwindowsinfutureversions
ofthisanalysis,whichcouldchangetheresults.
Overall,CBOfindsadailyweightedaverageof11deaths,156EDvisits,and$388,000inspendingper100,000Medicareenrollees.ED=emergencydepartment.4
MedicareandClimateData
MedicareOutcomes
.DailycountsofEDvisitsandspendingbyzipcode(2000to2019)forfee-for-service(FFS)enrollees
–Alsodisaggregatedtoinpatient(IP)andoutpatient(OP)visitsandspending;IPinvolvesanovernighthospitalstay,butOPdoesnot
.Dailydeathsbyzipcodeper100,000enrollees(2000to2019)
–IncludesFFSandMedicareAdvantage
Weather
.DailyaveragetemperatureandprecipitationfromtheNationalOceanicandAtmosphericAdministration’snClimGrid-Daily(2000to2019)
.TheNationalAeronauticsandSpaceAdministration’sEarthExchangeGlobalDailyDownscaledProjections(through2099)
–25-kilometerx25-kilometergrid
–Dailyprojectionsofaveragetemperature
.Botharematchedtozipcodetabulationareas(ZCTAs)andweightedbyinversedistancetoZCTAcentroid
Dailyaveragetemperatureisthesimplemeanofdailyminimumandmaximumtemperatures.5
EstimatingHomogeneousEffectsofTemperatureBins
yisty=βbtempbisty+yxit+aid+δsy+Eisty
.yistyisthethree-daysumofthehealthoutcome(EDvisitsorEDspendingper100,000MedicareFFSenrollees,ormortalityper100,000Medicareenrollees)inZCTAi,instates,ondatet,inyeary.
.βbarecoefficientsofinterest.
.tempbistyarethedailyaverage5degreesFahrenheittemperaturebinsfrom0to100(60to65degreesFahrenheitistheomittedcategory),wherebindexesthebins.
.xitisavectorofcontrolsfordailyprecipitationandfullyinteractedtwo-andseven-daytemperaturelagsplusleads.
.aidandδsyareZCTA-day-of-yearandstate-yearfixedeffects.EachobservationisweightedbyZCTAMedicareenrollment.StandarderrorsareclusteredbyZCTA.
MedicaredataareaggregatedtothezipcodeandtemperaturedatatotheZCTA.Thoselevelsarenearlyidentical,butCBOperformsacrosswalkbetweenthetwotostayattheZCTAlevel.6
ChangeinThree-DayEmergencyDepartmentVisitsper100,000Fee-for-ServiceMedicareEnrollees
AllEDvisitsincreasewith
higher-temperaturedays.
EDvisitsdecreasewith
coolertemperaturesinthe
shortterm.OPvisitsdrive
thateffect,becauseIPvisitsaremorecomplexand
thereforemoreunavoidable.
ED=emergencydepartment;IP=inpatient;OP=outpatient;ZCTA=zipcodetabulationarea.7
ChangeinThree-DayEmergencyDepartmentSpendingper100,000Fee-for-ServiceMedicareEnrollees
EDspendinggenerallyincreases
withhighertemperatures.The
increaseisgreaterforIPvisitsthanforOPvisits,whichisconsistent
withthegreatercomplexityandcostofIPvisits(whichthereforeresultinahospitalstay).
Oncolddays,anincreaseinIP
spendingdrivesanoverallincreaseinEDspending.OPspending
decreasesslightlyoncolddays,
suggestingthatthedecreaseinEDvisitsmayhavebeenconcentratedinlower-costvisits.
ED=emergencydepartment;IP=inpatient;OP=outpatient;ZCTA=zipcodetabulationarea.8
UsingDifferencesinLocalAverageClimatetoAccountforAdaptation
Extremetemperaturesdonotaffectallareasequallybecauseofdifferent
levelsofadaptation:Forexample,a
dailytemperatureof90degrees
FahrenheitislikelytobemoreharmfulinMinneapolisthaninDallas.
CBOcapturesthatdifferenceby
allowingtheeffectofeachtemperaturebintodifferonthebasisofaZCTA’s
averageclimate.
CBOcomputestheaverageannual
coolingdegreedays(CDDs)foreachZCTAandestimatesaseparatelinearsplineinCDDsforeachtemperaturebin.AnnualCDDscapturehowoftenandbyhowmuchthedaily
temperaturesurpassed65degreesFahrenheit.
CDDs=coolingdegreedays;ED=emergencydepartment.9
ChangeinThree-DayInpatientandOutpatientEmergencyDepartmentVisitsforThreeIllustrativeCities
DespitetheoverallpatternoffewerEDvisitsoncolddays,placeswithwarmerclimatesexperiencemoreEDvisits
whenthetemperatureis
below20degreesFahrenheit.Placeswithmildandcold
climatesexperiencemoreEDvisitsonhotdays.
ED=emergencydepartment.10
ChangeinThree-DayInpatientandOutpatientEmergencyDepartmentSpendingforThreeIllustrativeCities
Spendingincreases
substantiallyatthe
extremes,withsignificantheterogeneitybyclimate.
ED=emergencydepartment.11
ProjectingtheEffectsofClimateChange
CBOcomputestheprojectedchangeinthefuturetemperaturedistribution
relativetothe2015–2019averageandappliesthatchangetotheagency’s
historicalweatherdata.
Toaccountforadaptation,CBOallowsaZCTA’stemperatureresponsetovaryinthefutureonthebasisofitsprojectedCDDsusingsplineestimates.
Forexample,Minneapolisisgradually
allowedtohaveatemperature
responseby2075thatapproachestheresponseofWashington,DC,today.
CBO’scentralclimatescenariois
SSP2-4.5,buttheagencyalsopresentscaseswithlow(SSP1-2.6)andhigh
(SSP3-7.0)emissionsandwarming.
CBOtakestheunweightedaverageofNEX-GDDPdailydownscaledprojectionsfrommodelsreportingafullyearofprojections.Dallas’sCDDsin2075areestimatedtobe3300,
exceedingthelimitsofthisfigure.CDDs=coolingdegreedays;ED=emergencydepartment;SSP=sharedsocioeconomicpathway.
12
ProjectedChangeinAnnualEmergencyDepartmentVisitsper100,000MedicareEnrollees
AverageannualEDvisitsper
100,000enrolleesfrom2030to2075areprojectedtoincreasebyanaverageof250under
SSP2-4.5.Underalternative
scenarios,thosevisitsare
projectedtoincreaseby175
(SSP1-2.6)to285(SSP3-7.0).
Withoutadaptation,average
annualEDvisitsareprojectedtoincreaseby415per100,000enrollees.
ThefigureshowsthechangeinIPandOPvisitsrelativetothe2015-2019average.ED=emergencydepartment;SSP=sharedsocioeconomicpathway.13
ProjectedChangeinAnnualEmergencyDepartmentSpendingper100,000MedicareEnrollees
AverageannualEDspendingper100,000enrolleesfrom2030to
2075isprojectedtodecreaseby
anaverageof$750,000under
SSP2-4.5.TheprojecteddecreaseinEDspendingisdrivenbya
decreaseof$870,000inOP
spendingthatispartiallyoffsetbyanincreaseof$120,000inIP
spending.
Underalternativescenarios,
averageannualEDspendingper100,000enrolleesisprojectedtodecreaseby$510,000(SSP1-2.6)to$810,000(SSP3-7.0).Withoutadaptation,averageannualED
spending(IPandOP)isprojected
toincreaseby$48,000per100,000enrollees.
ThefigureshowsthechangeinIPandOPspendingrelativetothe2015-2019average.SSP=sharedsocioeconomicpathway.14
PreliminaryProjectedOutcomeSummaryforSSP2-4.5,2030to2075
.AverageannualEDvisits(IPandOP)areprojectedtoincreaseby235,000peryearfrom2030to2075.
-About1percentoftotal2019EDvisits
.CumulativechangesinEDspending(IPandOP)through2075areprojectedtodecreasebyroughly$7billion.
-Anincreaseofabout$1.1billioninOPspendingandadecreaseofabout$8.1billioninIPspending
-Anaverageannualdecreaseof$700million,orabout1percentoftotal2019EDspending
.Cumulativemortalitythrough2075isprojectedtodecreasebyroughly320,000.
-Anaverageannualdecreaseofabout32,000,orabout2percentoftotal2019Medicaremortality
TotalcumulativechangesarebasedonMedicareenrolleeprojectionsandonthesumoffive-yearincrementalestimatesfrom2030to2075.15
NextSteps
.Extendtheoutcomeobservationwindowtoa28-daysum
.Examinedifferencesinmortalityeffectsbys
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