Who Pays More for Healthcare? Race, Age, and the Cost Gap
A demographic breakdown of 5,150,569 Medicare beneficiaries across 3,093 hospitals.
Important context: Correlation does not equal causation. Demographic differences in hospital costs reflect systemic factors — geographic distribution, hospital access, insurance structures, and historical inequities — not individual patient characteristics. This data describes where patients receive care, not why costs differ.
5,150,569
Beneficiaries
6,925,188
Discharges
75.1
Avg Patient Age
2.02
Avg Risk Score
Cost by Patient Age
Hospitals grouped into quartiles by average patient age. Counterintuitively, younger-patient hospitals have higher average charges — likely because younger Medicare patients tend to be sicker (disability-qualified).
Youngest quartile
Avg age: 71.3
Avg Charge$84,907
Avg Markup5.17×
2nd quartile
Avg age: 74.9
Avg Charge$70,000
Avg Markup5.41×
3rd quartile
Avg age: 76.2
Avg Charge$64,723
Avg Markup5.38×
Oldest quartile
Avg age: 78
Avg Charge$59,733
Avg Markup5.04×
Dual Eligibility: The Poverty Factor
24.9%of beneficiaries are "dual-eligible" — qualifying for both Medicare and Medicaid, indicating low income. Here's how hospitals serving more dual-eligible patients compare:
High Dual-Eligible Hospitals
Hospitals503
Avg Charge/Discharge$75,466
Avg Markup4.81×
Low Dual-Eligible Hospitals
Hospitals465
Avg Charge/Discharge$75,097
Avg Markup5.98×
Notably, hospitals with more low-income patients have lower markups on average (4.81× vs 5.98×), suggesting wealthier-area hospitals may be more aggressive with pricing.
Gender Distribution
52.8%
Female
47.2%
Male
Race & Ethnicity
White
80.8%
Black
9.5%
Hispanic
5.9%
Asian/Pacific Islander
2.3%
Other
1.0%
Native American
0.5%
Age Distribution
11.5%
Under 65
593,300
33.0%
65–74
1,699,902
33.9%
75–84
1,744,009
21.5%
85+
1,105,636
Reminder: This analysis covers Medicare fee-for-service beneficiaries only. Demographics here reflect who uses inpatient hospital services, not the general population. Differences in cost across demographic groups reflect structural and systemic factors, not patient-level decisions.