Medicare covers portable oxygen machines, but only if your doctor prescribes them and you meet specific medical requirements

Medicare Part B covers durable medical equipment (DME) including portable oxygen concentrators — the category that includes Inogen devices. The catch is that Medicare does not cover the device straightforward because it exists or because you want one. Your doctor must document that you have a medical need for supplemental oxygen, usually through a blood oxygen test, and you must use a Medicare-approved supplier to rent or buy the machine.

If your doctor prescribes oxygen, Medicare typically covers 80 percent of the approved amount after you meet your Part B deductible. You pay the remaining 20 percent. The exact cost depends on whether you rent or purchase, which supplier you use, and what your specific plan covers.

Key Takeaways

  • Your doctor must prescribe oxygen and document medical need through testing before Medicare will consider coverage.
  • You must obtain the machine from a Medicare-approved DME supplier, not directly from the manufacturer.
  • Medicare covers 80 percent of the approved rental or purchase price after your Part B deductible is met.
  • Rental costs are typically lower upfront but add up over time, while purchase requires a larger initial payment.
  • If you have a Medigap or Medicare Advantage plan, your out-of-pocket costs may be lower than Original Medicare alone.

How Medicare determines if you need oxygen

Medicare requires objective medical evidence that you need supplemental oxygen. This almost always means a blood oxygen test (arterial blood gas test or pulse oximetry) showing your oxygen level is below a certain threshold. Your doctor orders the test, and the results become part of your medical record.

The test must show your oxygen saturation is 88 percent or lower at rest, or 88 percent or lower during exercise or sleep, depending on your condition. Some people with chronic obstructive pulmonary disease (COPD), pulmonary fibrosis, or heart disease meet this threshold. Others with lower oxygen levels may not, depending on how the test was performed and what your doctor documents.

Once your doctor confirms medical need, they write a prescription for oxygen. The prescription specifies the flow rate (how much oxygen you need per minute) and when you need it — at rest, during activity, or at night. This prescription is what you bring to a Medicare-approved supplier.

Finding a Medicare-approved supplier

You cannot buy or rent an Inogen machine directly from Inogen and expect Medicare to pay. You must use a supplier that is enrolled in Medicare and approved to dispense DME. These suppliers are listed in the Medicare DME Supplier Directory, which you can search on Medicare.gov.

Many local medical supply companies, pharmacy chains, and national DME companies are Medicare-approved. Some of them carry Inogen devices; others carry competing brands like Philips Respironics or ResMed. When you call a supplier, ask whether they carry the specific model your doctor prescribed and whether they accept Medicare assignment (meaning they bill Medicare directly and you pay only your share).

The supplier will verify your prescription with your doctor, confirm your Medicare coverage, and explain your costs before you take the machine home. If the supplier is not Medicare-approved or you bypass the approval process, Medicare will not pay, and you will owe the full cost.

Renting versus buying through Medicare

Medicare allows you to either rent or purchase a portable oxygen concentrator. The choice affects your when ready cost and your long-term expense.

Renting typically costs less per month — usually between $50 and $150 depending on the machine and your location — but the payments continue indefinitely. After 36 months of rental payments, Medicare stops paying and you own the machine. Some people find this useful if they are unsure whether they will need oxygen long-term or if they want to avoid a large upfront cost.

Purchasing requires a larger initial payment but no ongoing rental fees. The approved purchase price for a portable oxygen concentrator ranges widely but often falls between $2,000 and $3,000 before insurance. You pay 20 percent of the approved amount after your deductible; Medicare pays 80 percent. Once you own it, there are no more monthly payments, though you may pay out-of-pocket for repairs or replacement batteries.

Your supplier can help you compare the total cost of renting versus buying based on your specific situation and the machine your doctor prescribed.

What you pay out of pocket

Your actual cost depends on your Medicare plan and whether you have reached your deductible for the year.

If you have Original Medicare (Part A and Part B), you pay your Part B deductible first — $226 in 2024, though this amount changes yearly. After you meet the deductible, you pay 20 percent of the Medicare-approved amount for the oxygen machine. The supplier bills Medicare for the remaining 80 percent.

If you have a Medigap plan, it may cover some or all of your 20 percent coinsurance, depending on which Medigap plan you chose. If you have a Medicare Advantage plan, your costs work differently — you may have a copay instead of coinsurance, and your out-of-pocket maximum is capped. Check your plan documents or call your plan to learn your specific costs before you order the machine.

Some suppliers offer payment plans if you cannot pay your share upfront. Ask about this option when you contact them.

What happens if your doctor prescribes a brand-name machine

Your doctor may prescribe "Inogen" by name, or they may straightforward prescribe "portable oxygen concentrator." If they name a specific brand, the Medicare-approved supplier must attempt to provide that brand. However, if the supplier does not carry it or if it is not on the Medicare-approved list for your region, the supplier can offer an equivalent alternative.

Medicare approves certain models of portable oxygen concentrators based on clinical evidence that they work safely and effectively. Inogen makes several models that are on this list, but so do other manufacturers. If your doctor prescribes Inogen specifically and your supplier does not carry it, ask your doctor whether an alternative brand would work for your medical needs.

Do not assume that a more expensive or newer model will be covered at a higher rate. Medicare pays based on the approved amount for the category of equipment, not the brand or model price.

How to start the process

First, talk to your doctor about whether you need supplemental oxygen. If your doctor thinks you might, they will order a blood oxygen test. Once the test results show medical need, your doctor writes a prescription.

Next, search the Medicare DME Supplier Directory on Medicare.gov for approved suppliers in your area. Call at least two or three suppliers and ask about the machines they carry, the cost to you after insurance, and whether they accept Medicare assignment.

Once you choose a supplier, they handle the rest — verifying your prescription with your doctor, confirming your Medicare coverage, and arranging delivery. The entire process from prescription to machine in your home typically takes one to two weeks, though it can be faster if everything is in order.

Frequently Asked Questions

Will Medicare pay for a second portable oxygen machine?

Medicare covers one portable oxygen concentrator per person. If you need a backup machine or a second device for a different location, you would pay out of pocket for the additional machine. Some people rent a second machine for travel while owning their primary one at home.

What if I already bought an Inogen machine out of pocket before I knew about Medicare coverage?

Medicare does not reimburse you for equipment you purchased before getting a prescription and using a Medicare-approved supplier. Going forward, if your doctor prescribes oxygen, you can obtain a new machine through the Medicare process and pay only your share. Keep your out-of-pocket machine as a backup if you wish.

Does Medicare cover replacement batteries or accessories for the oxygen machine?

Medicare covers replacement batteries and accessories as part of the rental or purchase agreement with your supplier. If you rent, the supplier replaces worn batteries at no extra cost. If you own the machine, ask your supplier what is covered under warranty and what you would pay for out-of-warranty repairs or replacements.

Can I use my oxygen machine while traveling?

Yes. Portable oxygen concentrators are designed for travel. If you rent, your supplier can arrange for you to pick up or have delivered a machine at your destination. If you own the machine, you can travel with it — just plan ahead for battery charging and any airline requirements if you fly.

What if my oxygen needs change after I get the machine?

Tell your doctor if you feel short of breath even with the oxygen, or if you have side effects. Your doctor can order a new blood oxygen test and adjust your prescription. Your supplier can then adjust the machine settings or, if needed, exchange it for a different model. Medicare covers these adjustments as part of your ongoing care.