Healthcare Costs Force Americans to Cut Essentials for Medical Expenses

Financial Trade-offs Driven by Healthcare Costs

Many American households are confronted with difficult financial choices, primarily stemming from increasing healthcare expenses. A recent survey conducted by the West Health-Gallup Center found that a significant portion of the population is making sacrifices in daily living expenses to afford medical care.

Based on data collected from around 20,000 U.S. adults, 62% reported having to cut back on essentials such as meals or utility bills to manage healthcare costs. This trend is particularly pronounced among those earning less than $24,000 annually, yet the data indicates that even some households with incomes up to $120,000 are facing similar pressures. This financial strain is set against a backdrop of anticipated increases in health insurance premiums as expanded tax credits from the Affordable Care Act are phased out.

Ellyn Maese, research director at the West Health-Gallup Center, stated in a CNN interview, “Even middle-class Americans are reducing utilities and borrowing money for health care." The impact of rising out-of-pocket costs and insurance premiums is expected to intensify in 2026, particularly as changes to Medicaid enrollment are anticipated.

The expansion of ACA tax credits under the American Rescue Plan Act, which provided expanded ACA tax credits during the COVID-19 pandemic, has since expired. Without renewal from Congress, 22 million Americans are expected to see their healthcare premiums rise steeply.

Another survey conducted by West Health-Gallup found that 10% of respondents have had to delay significant life events due to the burden of healthcare costs, highlighting a broad impact