Hospital Prices Have Risen Much Faster for Private Insurance Than Medicare Since 2019 Authors: Jamie Godwin and Zachary Levinson Published: May 18, 2026

https://www.kff.org/health-costs/hospital-prices-have-risen-much-faster-for-private-insurance-than-medicare-since-2019/ Health care costs are a top concern for the public, and there is widespread interest among lawmakers in making health care more affordable. Attention has increasingly focused on hospitals, which represent nearly one third of total health care spending and accounted for 40% of spending growth from 2022 to 2024. Hospital spending reflects both the prices paid for services and the volume and intensity of care delivered, and trends in both factors have implications for affordability and spending growth. The prices paid by private insurers are higher than Medicare rates on average—e.g., nearly double traditional Medicare rates for hospital services when averaging across studies, according to a prior KFF review—and vary across regions and across hospitals and payers within regions. These high prices affect households through higher premiums and cost sharing obligations and reduced wages for those with employer-sponsored health coverage.