How to handle father in hospice and Medicaid?

If he is on hospice, why are you worried about Medicaid? Or do you mean Medicare who is paying for his hospice?

If Medicare, they have nothing to do with who pays the bills.

No question but his rent and all expenses need to be coming out of his money. As far as what you have already laid out some of that may depend on how long you have been doing this, what state you live in and how well you can prove it. I would urge you to go sit down with an Elder Care/Estate attorney to make sure all the proper duck are in order (that you can put in order) so you don't miss anything else moving on too. They will know the intricacies of your (or Dad's) state as well as the logical options for you to consider. This should be paid for out of Dad's funds, Medicaid allows that expense, especially since it sounds like Dad has those funds.

He can’t pay you back. You can prepay for funeral expenses and use the money to pay for his rent and any other expenses moving forward.

👌

Why have you been paying his rent? Can you prove that through bank records to Medicaid authorities? His money will have to be paid towards his living expenses and health care until he qualifies for Medicaid but since he has that much he may not qualify for a while.