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

Medicare Part B covers portable oxygen concentrators as durable medical equipment (DME) when a doctor determines you need supplemental oxygen because of a lung or heart condition. The device itself, the rental or purchase, and ongoing maintenance are all covered — but Medicare will not pay for a concentrator you buy on your own without a prescription or from a supplier who is not enrolled with Medicare.

The coverage path is straightforward: your doctor writes an order, you work with a Medicare-enrolled DME supplier, and Medicare pays 80 percent of the approved amount after you have met your Part B deductible. You pay the remaining 20 percent. If you have a Medigap or Medicare Advantage plan, your out-of-pocket cost may be lower.

Key Takeaways

  • Your doctor must write a prescription stating you need supplemental oxygen; Medicare does not cover concentrators ordered without medical documentation.
  • You must use a Medicare-enrolled DME supplier; buying from a non-enrolled seller means Medicare will not pay anything toward the cost.
  • Medicare pays 80 percent of the approved amount after your Part B deductible is met; you are responsible for the remaining 20 percent.
  • Portable concentrators are covered whether you rent or purchase, and maintenance and repairs are included in the coverage.
  • Your doctor may need to document your oxygen level using a blood oxygen test or sleep study to show medical necessity.

How to start: getting a prescription and finding a supplier

Begin with your primary care doctor or pulmonologist. Tell them you need a portable oxygen concentrator and ask them to order a blood oxygen test (called a pulse oximetry test) or refer you for a sleep study if they have not done one recently. Medicare requires proof that your oxygen level falls below a certain threshold — typically a reading of 88 percent or lower on room air, or 89 percent or lower during sleep or exercise.

Once your doctor has the test results and confirms you need supplemental oxygen, they will write a prescription that includes the type of device (portable concentrator), the flow rate you need (measured in liters per minute), and how many hours per day you should use it. Bring this prescription to a Medicare-enrolled DME supplier in your area. You can find enrolled suppliers by calling 1-800-MEDICARE or searching the Medicare Supplier Directory online at dmepos.cms.gov.

The DME supplier will verify your Medicare coverage, confirm your deductible status, and explain your out-of-pocket costs before you take the device home. Some suppliers offer both rental and purchase options; Medicare covers both, though the cost structure differs.

Rental versus purchase: which Medicare covers

Medicare covers portable oxygen concentrators under a rental-to-purchase program. This means you can rent the device month to month, and after 36 months of rental payments, you own it. The monthly rental cost varies by supplier and region, but Medicare's approved amount is typically between $200 and $400 per month.

Alternatively, you can purchase a concentrator outright. Medicare will pay 80 percent of the approved purchase price (after your deductible), which usually ranges from $2,000 to $4,000 depending on the model and features. If you choose to buy, you own the device when ready and are responsible for any repairs after the manufacturer's warranty expires, though Medicare may cover replacement parts.

Renting makes sense if you are unsure whether you will need the device long-term, want to avoid upfront costs, or prefer to have the supplier handle maintenance. Purchasing makes sense if you plan to use the concentrator for more than three years, want to own your equipment, or prefer not to pay ongoing monthly fees.

What Medicare does not cover

Medicare does not cover portable oxygen concentrators purchased from online retailers, big-box stores, or suppliers who are not enrolled with Medicare — even if your doctor prescribed one. You must use an enrolled supplier for any part of the cost to be covered.

Medicare also does not cover concentrators for travel or backup purposes if you already have a stationary concentrator at home and your oxygen needs are being met. The device must be medically necessary for your condition, not optional or supplemental to equipment you already own.

Accessories like carrying cases, batteries, or replacement filters are sometimes covered, but coverage varies. Ask your DME supplier which accessories are included in your rental or purchase agreement and which you may need to pay for separately.

Your out-of-pocket costs and how to estimate them

Your costs depend on whether you rent or buy, your Part B deductible status, and whether you have supplemental insurance. If you have not yet met your 2024 Part B deductible (which is $240), you will pay that amount first before Medicare begins paying its 80 percent share.

For rental: After your deductible, you pay 20 percent of the monthly approved amount. If the approved rental is $300 per month, you pay $60 per month out of pocket, and Medicare pays $240. Over 36 months, your total out-of-pocket rental cost would be roughly $2,160 (plus your deductible if not yet met).

For purchase: After your deductible, you pay 20 percent of the approved purchase price. If the approved price is $3,000, you pay $600 out of pocket, and Medicare pays $2,400. If you have a Medigap plan (such as Plan G or Plan F), it may cover your 20 percent coinsurance, reducing your cost to zero. If you have a Medicare Advantage plan, your out-of-pocket maximum and copay structure will determine your actual cost.

What happens if your oxygen needs change

If your doctor determines you need a different flow rate or a different type of concentrator, they can write a new prescription. Medicare will cover the change if it is medically necessary. If you are renting, the supplier will swap your device for the new one. If you purchased your concentrator, you may be able to trade it in or return it, depending on the supplier's policy and how long you have owned it.

If your oxygen needs improve and your doctor says you no longer need supplemental oxygen, you can return a rental concentrator and stop paying monthly fees. If you purchased one, you own it outright and can keep it, donate it, or sell it — Medicare has no claim on it once you own it.

Frequently Asked Questions

Do I need a sleep study to get a portable concentrator covered?

Not always. A straightforward blood oxygen test during rest or activity is often enough to show medical necessity. Your doctor will decide whether a sleep study is needed based on your symptoms and initial test results. If your resting oxygen level is clearly low, a sleep study may not be required.

Can I use a portable concentrator I already own, or does Medicare require me to get a new one?

If you already own a concentrator that works well, your doctor can still write a prescription for it, and Medicare will cover it going forward — but only if you use a Medicare-enrolled supplier to manage the coverage. You cannot straightforward tell Medicare you own one and expect payment; the supplier must be involved in the process.

What if my DME supplier goes out of business?

If your rental supplier closes, Medicare will help you find a new enrolled supplier to take over your rental agreement. Contact 1-800-MEDICARE to report the issue and request a referral to another supplier in your area. You should not experience a gap in coverage or lose your device.

Does Medicare cover batteries and replacement parts for a portable concentrator?

Batteries and replacement filters are usually covered as part of your rental agreement or included in the purchase. Ask your DME supplier upfront what is included and what you may need to pay for separately. Some accessories like carrying cases may not be covered.

Can I rent a portable concentrator from one supplier and buy from another?

You can switch suppliers if you are unhappy with service, but you cannot split a rental and purchase between two suppliers for the same device. Choose one supplier and one path (rent or buy) to keep your coverage clear and avoid billing confusion.