The cost of health care in the United States is on an upward trend. Nearly half of the population is afflicted with chronic diseases and coincidently, three-quarters of costs are spent on chronic care. Health disparities in the United States contribute to increased cost since populations that experience inequalities in health care are overburdened with disease and have poor health outcomes. They also have poor access to care which is linked to low-income populations. This study examined the association of income levels and preventable hospitalizations for chronic conditions. A random sample was chosen from the HCUP national database. A chi-squared test of association found that there was a significant relationship between income levels and preventable hospitalizations. A number of frequencies indicated that patients largely represented elder, low-income minority populations who were enrolled in publicly funded insurance programs. The findings of this study and its implication in health care are discussed.