Healthcare Costs Force Millions of Americans to Cut Back on Essentials, Delay Life Plans

WASHINGTON — A new report shows rising healthcare costs aren’t just hitting Americans at the doctor’s office; they’re reshaping everyday life and long-term plans.

According to data from the West Health-Gallup Center on Healthcare in America, about one in three U.S. adults, more than 82 million people, say they’ve cut back on basic expenses just to afford healthcare. The findings come from a national survey of nearly 20,000 adults conducted in 2025.

These cutbacks go far beyond discretionary spending or luxury items. Many respondents reported reducing spending on utilities, driving less to save on gas, stretching prescription medications to make them last longer, and even borrowing money to cover medical costs.

“What we’re seeing is a fundamental shift in household economics driven by healthcare costs,” said Dr. Eleanor Rhodes, healthcare economist at the Brookings Institution, who was not involved in the study. “Americans are increasingly making difficult trade-offs between medical care and other necessities.”

The financial strain is most severe among lower-income and uninsured Americans. About 62% of uninsured adults say they’ve made these kinds of trade-offs, according to the report. The lack of insurance coverage creates a particularly vulnerable population who often must choose between seeking care and meeting other basic needs.

However, the impact doesn’t stop with the uninsured or those with lower incomes; nearly 3 in 10 insured Americans report cutting back as well. This suggests that insurance coverage, while beneficial, often fails to fully shield Americans from rising healthcare costs due to high deductibles, co-pays, and services not covered by insurance plans.

Even higher-income households are feeling the pressure. Roughly a quarter of people earning between $90,000 and $120,000 annually report making sacrifices, and some households earning over $240,000 say the same. This upward creep of healthcare-related financial strain into middle and upper-income brackets represents a troubling trend for policymakers.

And the effects aren’t just short-term adjustments to monthly budgets.

A separate analysis from the same research group finds healthcare costs are also delaying major life decisions for millions of Americans. An estimated 24 million adults say they’ve postponed retirement due to healthcare expenses, creating potential long-term implications for labor markets and retirement systems nationwide.

Additionally, 18% report delaying job changes, potentially reducing workforce mobility and career advancement. Another 14% have put off buying a home, which could affect housing markets and wealth-building opportunities. Perhaps most concerning, 6% have delayed starting or growing a family due to healthcare cost concerns.

The trend cuts across income levels. The report finds that about half of households earning between $48,000 and $180,000 have delayed at least one major life decision because of healthcare costs. Even among higher earners, the impact remains significant: about one-third of those making $180,000 to $240,000 and one in four earning over $240,000 report delaying life plans.

“These findings challenge the notion that healthcare affordability is primarily a low-income issue,” said Maria Gonzalez, senior research director at the West Health-Gallup Center. “Our data clearly show that healthcare costs are affecting life decisions across the economic spectrum.”

Healthcare industry analysts note that the findings come amid ongoing national debates about healthcare reform, insurance coverage expansion, and drug pricing regulations. With healthcare spending now accounting for nearly 20% of U.S. GDP, the economic ripple effects extend beyond individual households to the broader economy.

Taken together, the data suggest healthcare costs are no longer just a medical issue — they’re increasingly shaping how Americans spend, save, and plan their futures, creating potential long-term consequences for both individual financial security and national economic trends.