Who Pays for Hospice Care? Hospice is a fully funded Medicare/Medicaid benefit, unlimited in length, and is also covered by many private insurance companies. Most plans cover hospice care, medications, supplies and equipment related to the hospice diagnosis with no out-of-pocket expenses to the patient. Early referrals help patients and their families access and receive the maximum benefit and full scope of hospice services.                 "The Focus of Hospice is Caring"