Medicare covers home oxygen therapy, but only when a doctor prescribes it for a medical reason and you meet specific conditions about how much oxygen your blood contains.
Medicare Part B pays for oxygen equipment and supplies if your doctor documents that you need it. The coverage includes the oxygen itself, the equipment to deliver it (like a concentrator or portable tank), and related supplies such as tubing and masks. However, Medicare does not pay for oxygen you obtain without a prescription, and the amount of coverage depends on whether you rent or buy your equipment and which supplier you use.
The process starts with your doctor. They must order oxygen therapy and document the medical reason — usually a lung condition like COPD, pulmonary fibrosis, or severe heart disease. Your doctor will also arrange for you to have a blood oxygen test (called an arterial blood gas test or pulse oximetry) to show that your oxygen level is low enough to meet Medicare's threshold. Once that documentation is in place, you can work with a Medicare-approved supplier to receive the equipment.
Key Takeaways
- Your doctor must prescribe oxygen and document a medical reason; Medicare will not cover oxygen ordered without a prescription.
- You must have a blood oxygen test showing your oxygen level is at or below Medicare's threshold, which your doctor arranges.
- Medicare Part B covers the oxygen, the equipment (concentrator or tanks), and supplies like tubing, but you pay 20 percent of the approved amount after you meet your Part B deductible.
- You can rent equipment month-to-month or buy it outright; Medicare's payment rules differ for each option.
- You must use a Medicare-approved supplier; using a non-approved supplier means Medicare will not pay.
How Medicare Decides Whether to Pay for Your Oxygen
Medicare uses two main criteria. First, your doctor must order the oxygen and state the medical reason in writing. Second, your blood oxygen level must meet Medicare's standard. Medicare requires that your oxygen saturation (the percentage of oxygen in your blood) be at or below 88 percent, or that you have a related condition like severe heart disease or pulmonary hypertension. Your doctor orders the test and interprets the results; if your oxygen level qualifies, your doctor sends the order to a Medicare-approved supplier.
The test itself is usually done in your doctor's office or a hospital lab. It takes only a few minutes. If the results show you may have access to, your doctor will write an order that includes the reason for oxygen therapy, how many hours per day you need it, and the flow rate (measured in liters per minute). This paperwork is what Medicare uses to decide whether to pay. Without it, you will be responsible for the full cost.
What Equipment and Supplies Medicare Covers
Medicare covers three main types of oxygen delivery equipment. A stationary concentrator is a machine that sits in your home and pulls oxygen from the air; it does not require refilling and runs on electricity. A portable concentrator is a smaller, battery-powered version you can carry with you. Oxygen tanks (also called cylinders) are metal containers filled with compressed oxygen that you can refill or exchange.
Medicare also covers the supplies you need to use the equipment: nasal cannulas (the tubing that goes under your nose), face masks, tubing, humidifiers, and regulators that control the flow rate. If your equipment breaks or wears out, Medicare covers repairs and replacement parts. Supplies like tubing and masks are typically replaced every few months, and Medicare covers those replacements as part of your ongoing coverage.
What Medicare does not cover includes oxygen for recreational use (such as "oxygen bars"), equipment or supplies you buy from a non-approved supplier, and any upgrades beyond what your doctor prescribed. If you want a fancier or more advanced model than what Medicare approves, you would pay the difference yourself.
Renting Versus Buying: How Medicare Pays
You have two options: rent equipment month-to-month, or buy it outright. Medicare's payment to the supplier differs for each.
If you rent, Medicare pays the supplier a monthly rental fee. You pay 20 percent of that fee (after your Part B deductible is met). The rental continues as long as you need the equipment. After 36 months of rental payments, Medicare stops paying the supplier, and the equipment becomes yours to keep. At that point, you no longer owe the monthly rental fee, though you still pay for supplies like tubing and masks.
If you buy, Medicare pays 80 percent of the approved purchase price (after your Part B deductible), and you pay 20 percent out of pocket. You own the equipment when ready. You are responsible for maintenance and repairs after the manufacturer's warranty ends, though Medicare covers replacement parts if they fail. Some people choose to buy if they plan to use oxygen long-term or if they want to own the equipment outright.
Your doctor and supplier can help you decide which option makes sense for your situation. Rental is often simpler if you are unsure how long you will need oxygen, because you do not have to worry about repairs. Buying may cost less over time if you need oxygen for many years.
Finding a Medicare-Approved Oxygen Supplier
You must use a supplier that Medicare has approved. Your doctor may recommend one, or you can search the Medicare Supplier Directory on Medicare.gov. The directory lets you enter your ZIP code and see which suppliers are approved in your area. You can contact multiple suppliers to compare their equipment options, delivery times, and customer service before you choose.
When you contact a supplier, have your doctor's prescription ready. The supplier will verify that your prescription meets Medicare's requirements and that you are enrolled in Part B. They will also explain whether they rent, sell, or do both, and what your out-of-pocket cost will be. A reputable supplier will answer questions about equipment maintenance, emergency refills, and how to reach them if you have a problem.
Your Out-of-Pocket Costs
Your costs depend on whether you have met your Part B deductible for the year. Once you meet the deductible, Medicare pays 80 percent of the approved amount for oxygen equipment and supplies, and you pay 20 percent. The deductible amount varies by year; you can find the current year's deductible on Medicare.gov.
If you have a Medigap or Medicare Advantage plan, your out-of-pocket costs may be lower. Medigap plans often cover the 20 percent coinsurance, and Medicare Advantage plans have their own cost-sharing rules. Check your plan documents or call your plan to understand what you will owe.
Rental costs are typically lower upfront than purchase costs, but they add up over time. A monthly rental might cost $50 to $100 (your share after insurance), while buying a concentrator might cost $1,000 to $3,000 out of pocket. The break-even point is usually around 36 months, which is when Medicare stops paying rental fees and the equipment becomes yours.
What Happens if Your Oxygen Needs Change
If your doctor determines that you no longer need oxygen, or that you need a different amount or type of equipment, your doctor will write a new order. Medicare will adjust your coverage based on the new prescription. If you are renting and no longer need the equipment, you can return it to the supplier and stop paying the monthly fee.
If you need more oxygen than your current equipment provides, or if you need a portable concentrator in addition to a stationary one, your doctor can order additional equipment. Medicare will cover it under the same rules as your original order. Tell your supplier and doctor if you feel your current setup is not meeting your needs; they can adjust the prescription and equipment to match.
Frequently Asked Questions
Does Medicare cover oxygen if I do not have a prescription?
No. Medicare requires a doctor's written prescription that includes the medical reason for oxygen and your blood oxygen test results. Without a prescription, you will pay the full cost yourself. If you think you need oxygen, ask your doctor to order a blood oxygen test.
What if my oxygen supplier goes out of business?
Contact Medicare or your doctor right away. Medicare can help you find another approved supplier in your area. If you own your equipment, you can keep using it and contact a new supplier for refills and maintenance. If you are renting, the new supplier will take over your rental agreement.
Can I use oxygen from a supplier who is not on Medicare's approved list?
You can, but Medicare will not pay for it. You will be responsible for the full cost. It is always best to use a Medicare-approved supplier so that your insurance covers the expense.
Do I have to pay for oxygen supplies like tubing and masks?
Medicare covers routine supplies, and you pay your usual 20 percent coinsurance after the deductible. However, if you want premium or specialty supplies beyond what your doctor prescribed, you may have to pay extra for the upgrade.
What if I travel and need oxygen away from home?
Talk to your supplier before you travel. Many suppliers can arrange portable oxygen or connect you with suppliers in the area where you are going. Medicare covers portable concentrators and portable tanks the same way it covers stationary equipment, so your coverage travels with you.