Medicare, Medicaid, the Department of Veterans Affairs, and private insurance typically pay for hospice care. You must choose a Medicare-approved hospice provider that is able to accept Medicare payments. Ask about payment information before choosing a hospice program.

Once your hospice benefit starts, Medicare will not cover the following:

• Treatment intended to cure your terminal illness and/or related conditions.
  Talk with your doctor if you're thinking about getting treatment to cure your illness. As a hospice patient, you always have the right to stop hospice care at any time.
• Prescription drugs to cure your illness (rather than for symptom control or pain relief).
• Care from any hospice provider that wasn't set up by the hospice medical team.
  You must get hospice care from the hospice provider you chose. All care that you get for your terminal illness must be given by or arranged by the hospice team. You can't get the same type of hospice care from a different hospice, unless you change your hospice provider. However, you can still see your regular doctor or nurse practitioner if you've chosen him or her to be the attending medical professional who helps supervise your hospice care.
• Room and board.
  Medicare doesn't cover room and board if you get hospice care in your home or if you live in a nursing home or a hospice inpatient facility. If the hospice team determines that you need short-term inpatient or respite care services that they arrange, Medicare will cover your stay in the facility. You may have to pay a small copayment for the respite stay.
• Care you receive in an emergency room, care you receive as a hospital inpatient, or ambulance transportation, unless it's either arranged by your hospice team or is unrelated to your terminal illness and related conditions.
  
  

Resources:

Medicare and Hospice Benefits Brochure – CMS
Medicare and Hospice Care – Medicare.gov