Who Pays for Hospice Care?

When families begin exploring hospice, one of the first questions is often financial: Who pays for hospice care? In a time already filled with emotional strain, knowing what to expect can bring peace of mind. Fortunately, hospice care is covered by Medicare, Medicaid, most private insurance plans, and veterans’ benefits, with many patients paying little to nothing out of pocket.

How Hospice is Covered

Medicare (Part A – Hospice Benefit): Covers hospice-related services, including nursing and physician visits, medications for the terminal illness, medical equipment, respite care, counseling, and bereavement support. Patients typically pay nothing, with minimal co-pays for medications or respite care.

Medicaid: Offers similar benefits, though eligibility and coverage rules vary by state. For low-income patients without Medicare, Medicaid often becomes the primary payer.

Private Insurance: Most commercial plans include hospice benefits. Coverage and copays can vary, so it’s important to confirm in-network providers and included services. Hospice staff can assist in navigating insurance questions.

Veterans Affairs (VA): Eligible veterans may receive hospice care fully covered through VA programs or community-based hospice agencies.

Charity & Sliding Scale Support: For uninsured or underinsured patients, many hospices provide free or reduced-cost care through donations and grants, ensuring everyone can receive compassionate care regardless of financial situation.

The Reality: Meeting Gaps in Care

At Hospice of Orange & Sullivan Counties, we know that Medicare and Medicaid reimbursements often cover only a fraction of the true cost of care, making donor support essential to ensure every patient receives the comfort and dignity they deserve.

Hospice care is vital, yet Medicare and Medicaid reimbursements often fall short of the true cost of services, especially in rural areas like Sullivan and Ulster Counties. At the Kaplan Family Hospice Residence, acute care can cost around $1,000 per day, while Medicare typically covers only about 25% of that expense. Many essential services, including bereavement support, are not funded at all.

Thanks to the generosity of our donors, we are able to bridge these gaps, ensuring that every patient receives the care they need—regardless of their ability to pay.

Getting Started

Understanding hospice coverage can relieve a major source of stress. If you’re considering hospice, reach out to a local provider. Their team will guide you through eligibility, coverage, and options with clarity, compassion, and support, so your loved one can receive dignified, high-quality care without financial worry.

It’s never too soon to call—help and guidance are available every step of the way.