Healthcare Costs Force Millions of Americans to Cut Basics, Delay Life Milestones

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 extend well beyond discretionary spending. Many Americans report reducing utilities usage, limiting driving to save on fuel costs, stretching prescription medications beyond recommended dosages, and borrowing money specifically to cover medical expenses.

“What we’re seeing is healthcare costs forcing impossible choices between medical care and other necessities,” said Dr. Shelley Lyford, President and CEO of West Health, in a statement accompanying the report. “This isn’t just about skipping a vacation or dining out less—people are making potentially dangerous compromises with their health and financial stability.”

The financial strain is most severe among lower-income and uninsured Americans. About 62% of uninsured adults report making these types of financial trade-offs, according to the report. However, the impact reaches across economic lines, with nearly 3 in 10 insured Americans also reporting cutting back on essentials to afford healthcare.

Even households traditionally considered financially secure are feeling the pressure. Roughly a quarter of people earning between $90,000 and $120,000 annually report making sacrifices for healthcare costs. Perhaps more surprising, the survey found that some households earning over $240,000—placing them in the top 5% of American earners—report similar compromises.

Healthcare industry analysts point to several factors driving these trends, including rising insurance premiums, higher deductibles, increased prescription drug costs, and a general shift toward consumer cost-sharing in the U.S. healthcare system.

The effects of these rising costs extend beyond immediate financial strain. A separate analysis from the same research group reveals that healthcare expenses are also forcing millions of Americans to postpone significant life milestones.

An estimated 24 million adults say they’ve delayed retirement specifically due to healthcare expenses. Meanwhile, 18% report postponing job changes—often staying in positions they might otherwise leave to maintain health coverage. Additionally, 14% have put off purchasing a home, and 6% have delayed starting or expanding their families.

“Healthcare costs are creating a ripple effect throughout the economy,” noted economist Patricia Martinson, who was not involved in the study but reviewed its findings. “When people delay retirement, that affects workforce dynamics. When they postpone home purchases or family formation, that impacts housing markets and consumer spending patterns. The implications extend far beyond individual households.”

This trend of delaying major life decisions cuts across income brackets. About half of households earning between $48,000 and $180,000 have postponed at least one major life decision due to healthcare costs. Even among higher earners, the impact remains significant: approximately one-third of those making $180,000 to $240,000 and one in four earning over $240,000 report delaying important life plans.

Policymakers have pointed to these findings as evidence that healthcare affordability remains a critical issue despite various reform efforts over the past decade. Several legislative proposals aimed at addressing healthcare costs are currently under consideration at both federal and state levels.

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 across all demographic and economic groups.