That's misleading. First of all, medicare is set by the government, and healthcare organizations cater service only to what is covered for medicare patients.

Secondly, hospitals charge people with insurance more. Typically if a patient is uninsured and paying cash, the hospital will work out ways to charge them less, because they are personally liable for way more than what insured are. Hospitals still want to get paid, and charging a patient into bankruptcy is not a way to achieve that.