04 March 2010

Hospital Study Places Price Tag on California's Dirty Air

Sacramento Bee


California's dirty air led to nearly $200 million in hospital spending over a three-year period – including $9 million in Sacramento County – because of asthma, pneumonia and other pollution-triggered ailments, according to a study released today.

With its research, Rand Corp. attempts to put a price tag on the state's bad air. The study analyzed records from hospitals and air quality agencies from 2005 to 2007. As many as 30,000 people statewide sought relief in emergency rooms because of air pollution during that period, the report states.

Sacramento County registered the fifth-highest health costs related to pollution, according to the study, trailing Los Angeles, Orange, San Bernardino and Riverside counties.

Researchers also undertook case studies at five hospitals, including UC Davis Medical Center, to determine how their finances are affected by poor air quality. From 2005 to 2007, $1.9 million was spent at UC Davis Medical Center by Medicare, Medi-Cal and other insurers to cover the cost of pollution-related care.

"California's failure to meet air pollution standards causes a large amount of expensive hospital care," said John Romley, the study's lead author.

While there is little debate that bad air often leads to bad health, particularly among those predisposed to respiratory problems, Rand researchers say their study for the first time breaks down who paid the bills.

"Very little is known about who pays for the care. It's not trivial," Romley said. "It's not just about what's being spent, but who's paying."

Medicare and Medi-Cal paid two-thirds of the costs associated with poor air quality, according to the study. Commercial insurers and other private sources footed the rest of the bill.

Among private insurers, Kaiser Foundation Health Plans accounted for $30 million of the $193 million spent during the three-year study period. The expenses borne by insurers do not include emergency room visits, researchers said.

Not surprisingly, more than two-fifths of the expenses were concentrated in traffic-choked Los Angeles County, with the rest mostly concentrated along the state's inner valleys, from Kern to Sacramento counties, where illness-causing particulates are more likely to linger.

Researchers say hospital costs are just a fraction of the hundreds of millions of dollars spent each year on pollution-related medical care. It is small wonder we are seeing a rise in California health insurance quotes.

The study focused on pollution from ozone, most commonly derived from automobile tailpipe emissions, and fine particulate matter, such as soot from fireplaces and wood-burning stoves.

"This study shows yet another side of the air pollution story by citing the health costs, both physical and financial, that Californians must pay because of smog and soot," state Air Resources Board Chairwoman Mary D. Nichols said in an e-mail sent by her office. "In particular, data like this shows why cleaning up the state's legacy fleet of diesel engines makes economic as well as environmental sense."

An agency spokesman said the Air Resources Board is moving ahead with new regulations to reduce diesel emissions by 85 percent by 2020.

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