Medicare cover chemotherapy if you're a cancer patient who is hospital inpatient or outpatient, as well as if you're a patient in doctor office or freestanding clinic. All people with Medicare part A(Hospital Insurance) and/or Medicare part B(Medical insurance) are covered. Part A cover hospital Inpatient, and part B cover hospital outpatient and patient in doctor office or freestanding clinic. Billing: You pay copayment if you're a hospital outpatient You pay 20% of medicare-approvedamoount. if you get treatment in doctor office or freestanding clinic.The part B deductible applies.