Medicare/Supplement/Medicaide

My step had a med sup in mo, but she went on hospice so they are making her come off of her supplement and apply for medicaide and taking her life insurance policies. Is there a way around this. This is not right, she had insurance. Why couldn't she just stay on Medicare Sup, she also had a long term care policy and just canceled it a few months ago because they would not pay for anything either. Any suggestions?

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