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I was told there are two levels of care. Routine care is with oral pain medication and Medicare does not cover that. The other level is with injected pain medication and Medicare does covert this. Is this correct? Are there any restrictions?

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I don't think this is correct. Medicare pays for all of my MIL's hospice meds, she doesn't receive any by injection, they are all oral. The only thing she had to pay for was an appetite stimulant. Its my understanding that hospice does not provide anything that prolongs life and they initially refused to prescribe the stimulant but MIL's caregiver fought them and he got it but had to pay for it.
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Who told you this? With the Hospice we used for my mom, all approved medications were covered by the Medicare-provided Hospice benefit.
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