Rising healthcare costs force Americans to make tough choices

David Johnson ; 2025-11-27 20:45:46

Even insured Americans are jeopardizing preventive care

Life & Health

By Josh Recamara

Dec 04, 2025Share

New findings from the Nationwide Retirement Institute has revealed that even insured Americans are struggling to manage rising healthcare costs, leading many to delay or skip essential care.

According to the results, nearly 37% of insured adults reported avoiding medical care when sick due to costs, and 41% have skipped appointments over the past year. Preventive services are particularly affected - dental cleanings (23%), vision tests (20%), specialist visits (17%) and mental health care (16%) have been postponed or canceled. While these measures reduce immediate expenses, they may increase long-term health and financial risks in retirement.

Insurance premiums on the rise

Costs for coverage continue climbing. In 2025, single coverage is expected to increase 5%, with family coverage rising 6%.

With temporary Affordable Care Act tax credits set to expire, households could face even higher premiums. Coupled with rising out-of-pocket expenses, Americans face a dual squeeze, with higher upfront costs and potential medical bills they cannot manage.

Nationwide's survey found that 18% have used medical debt or credit cards to cover expenses, and 31% cannot afford an unexpected $500 medical bill. High-cost medications, such as GLP-1 drugs, add further financial pressure.

According to Kristi Rodriguez, senior vice president of Financial Services Marketing and leader of the Nationwide Retirement Institute, these costs are forcing Americans to make difficult decisions about when and how to seek care, which can have lasting consequences for health outcomes and retirement finances.

Retirement planning under strain

Rising healthcare costs heighten retirement fears, with 73% listing health expenses as a top concern and 71% fearing impacts on savings. More than half reported that medical costs have already reduced their ability to save, and 68% worry that a single major health event could derail finances.

Yet, most Americans are unprepared - 59% are not confident in budgeting for retirement health care, 66% cannot estimate lifetime costs, and only 38% have a savings plan. Misunderstandings about Medicare are widespread, with two-thirds unsure if it covers long-term care.

Financial guidance can help

Working with a financial professional improves confidence and knowledge, with only 21% of clients paying for advice reporting uncertainty about Medicare coverage, compared with 42% of those without professional guidance.

However, more than half of clients have not received advice on when to file for Medicare, indicating opportunities for deeper support.

Rodriguez emphasized that financial professionals can help clients connect health and wealth by budgeting for routine care, planning for medical expenses, and navigating Medicare.