Medicare covers lab tests, yes. Hospice will allow the testing of urine as any urinary tract infection causes discomfort and can cause mental anquish as well. Often a UA only is ordered. If it is positive then a C&S is added. However, some have an odd thing where a UA doesn't show much but the C&S does, and I have had that a few times. So they can ask for a C&S as needed or order same.
If hospice expects a UTI, they(Medicare)will cover for a urinalysis to be done. They had to do that several times for my late husband, and Medicare/hospice covered them 100%.
Is hospice telling you they do not cover this?