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Most Arizona families pay little or nothing for hospice
The largest barrier to hospice care in Arizona is awareness, not cost. The vast majority of hospice patients qualify for Medicare, AHCCCS, or VA coverage that eliminates or nearly eliminates out-of-pocket expense. The question is not usually "can we afford this?" — it is "which payer applies to our situation?"
This guide explains each major payment source for Arizona hospice patients so families can understand what applies to them before making any decisions.
Medicare Part A — the primary payer for most Arizona hospice patients
Medicare Part A covers hospice for eligible Arizona patients when a physician certifies a life expectancy of six months or less and the patient elects the hospice benefit. Medicare is the primary payer for the majority of Arizona hospice patients — it covers:
- All nursing visits and hospice physician oversight — $0 out-of-pocket
- All medications related to the terminal diagnosis (pain medications, anti-nausea drugs, etc.) — maximum $5 copay per prescription
- Medical equipment delivered to the home: hospital bed, wheelchair, oxygen concentrator, commode, walker — $0
- Home health aide services for personal care — $0
- Social work, chaplain services, and counseling — $0
- Inpatient respite care (up to 5 consecutive days at a Medicare-approved facility) — 5% coinsurance may apply
- Bereavement counseling for the family for up to 13 months after the patient's death — $0
There are no enrollment fees, no deductibles for hospice services, and no time limits as long as the patient continues to meet eligibility criteria and a physician recertifies at each benefit period.
Medicare does not cover curative treatment for the terminal diagnosis while on hospice. It does continue to cover treatment for unrelated conditions — for example, if the patient is on hospice for cancer, Medicare continues to pay for treatment of an unrelated diabetes or heart condition.
AHCCCS and ALTCS — Arizona Medicaid coverage for hospice
Arizona's Medicaid program — AHCCCS (Arizona Health Care Cost Containment System) — covers hospice for qualifying low-income Arizona residents. For patients who are dual-eligible (both Medicare and AHCCCS), AHCCCS typically covers what Medicare does not — including the small drug copay that Medicare charges, making hospice effectively free for dual-eligible patients.
ALTCS (Arizona Long Term Care System) is the long-term care component of AHCCCS, serving Arizonans who need nursing-home level care. ALTCS members who enroll in hospice receive hospice services through the Medicare Hospice Benefit. Importantly, ALTCS can also continue to cover certain home-based services above and beyond what hospice provides — such as additional personal care hours — because ALTCS and hospice serve somewhat different service categories.
AHCCCS and ALTCS eligibility is based on income, assets, and clinical need. For 2026, the ALTCS monthly income threshold is approximately $2,829 for an individual. If you believe your loved one may qualify, ask the hospice social worker for assistance — navigating ALTCS eligibility is something Arizona hospice social workers do routinely. Contact AHCCCS directly at 1-800-654-8713 for eligibility information.
VA benefits for Arizona veterans in hospice
Arizona has a significant veteran population. The Phoenix VA Health Care System (Carl T. Hayden VA Medical Center), the Southern Arizona VA Health Care System (Tucson), and the Prescott VA Medical Center all provide or coordinate hospice care for enrolled veterans. VA hospice is covered as part of the VA medical benefit package for eligible enrolled veterans — typically with no copay for covered services.
Under the VA's MISSION Act community care program, veterans who meet access criteria (such as distance from a VA facility) may be eligible to receive hospice services from a community hospice provider, paid by the VA. This is particularly relevant for veterans in rural Arizona areas far from a VA facility.
Veterans who are eligible for both Medicare and VA benefits may be able to use both — Medicare as the primary payer for hospice services, with VA benefits covering additional needs. Ask the Arizona hospice provider's social worker about VA and Medicare coordination — this is a common situation in Arizona and experienced teams handle it routinely.
Medicare Advantage plans and hospice in Arizona
Arizona has high Medicare Advantage enrollment — major plans include Banner University Family Care, Mercy Care Advantage, UnitedHealthcare, Humana, Aetna, and Blue Cross Blue Shield of Arizona. All Medicare Advantage plans are required by law to cover the same hospice services as traditional Medicare, at the same cost-sharing levels.
The key difference: you may need to use a hospice provider that is in-network with your Medicare Advantage plan. Before enrolling, confirm in-network status with both the hospice provider and your plan. Most Arizona hospice providers contract with multiple Medicare Advantage plans and can verify your coverage quickly.
Starting January 2021, Medicare Advantage plans are required to allow enrollees to receive hospice care while remaining in their Medicare Advantage plan — you do not have to switch to traditional Medicare to access hospice benefits.
Private insurance and other payment sources in Arizona
Most private health insurance plans in Arizona include a hospice benefit. Coverage specifics vary by plan — some mirror Medicare's coverage closely, while others have different service limits or copays. Review your plan's hospice benefit section or contact member services to understand exactly what is covered.
Long-term care insurance (LTCI) policies may cover some hospice services or provide a daily benefit that can offset costs. Review your policy's hospice benefit language — some LTCI policies cover hospice in addition to nursing home and home care benefits.
For the rare case where a patient has no applicable insurance coverage, some Arizona nonprofit hospice providers offer charity care or sliding-scale fees based on financial need. Ask Arizona hospice providers directly about financial assistance. No one in Arizona should be unable to access hospice care solely due to inability to pay.
Frequently Asked Questions
Is hospice care free with Medicare in Arizona?
For most eligible patients, yes — effectively free. Nursing, medications, equipment, aide services, and family support are all covered. The only potential cost is 5% coinsurance for inpatient respite stays and a maximum $5 drug copay per prescription.
Does AHCCCS cover hospice in Arizona?
Yes. AHCCCS covers hospice for qualifying low-income Arizona residents. Dual-eligible patients (Medicare and AHCCCS) typically have all hospice costs covered, including the Medicare drug copay.
Does ALTCS cover hospice care in Arizona?
ALTCS members receive hospice through the Medicare Hospice Benefit. ALTCS can also continue to cover certain home-based services beyond what hospice provides. A hospice social worker can help clarify how ALTCS and hospice interact for your specific situation.
Does the VA cover hospice for veterans in Arizona?
Yes. Eligible enrolled veterans can receive VA-covered hospice through the Phoenix VA, Southern Arizona VA, Prescott VA, or through community hospice providers under the MISSION Act — typically with no copay.
Does Medicare Advantage cover hospice in Arizona?
Yes. All Medicare Advantage plans in Arizona must cover the same hospice services as traditional Medicare. Confirm in-network status with the hospice provider and your plan before enrolling.
What if my loved one has no insurance for hospice in Arizona?
Most Arizona hospice patients qualify for Medicare, AHCCCS, or VA coverage. For uninsured patients, some nonprofit Arizona hospice providers offer charity care. Ask providers directly about financial assistance.
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