Environmental Quality, Extreme Heat, and Healthcare Expenditures

Abstract

Although the effects of the environment on human health are well-established, the literature on the relationship between the quality of the environment and expenditures on healthcare is relatively sparse and disjointed. In this study, the Environmental Quality Index developed by the Environmental Protection Agency and heatwave days were compared against per capita Medicare spending at the county level. A general additive model with a Markov Random Field smoothing term was used for the analysis to ensure that spatial dependence did not undermine model results. The Environmental Quality Index was found to hold a statistically significant (p < 0.05), multifaceted nonlinear association with spending, as was the average seasonal maximum heat index. The same was not true of heatwave days, however. In a secondary analysis on the individual domains of the index, the social and built environment components were significantly related to spending, but the air, water, and land domains were not. These results provide initial support for the simultaneous benefits of healthcare financing systems to mitigate some dimensions of poor environmental quality and consistently high air temperatures.