Medicare covers portable oxygen equipment, but only if a doctor prescribes it for a medical reason and you meet specific requirements

Medicare Part B pays for oxygen equipment and supplies when a physician documents that you have a condition requiring supplemental oxygen — most commonly chronic obstructive pulmonary disease (COPD), severe pneumonia, or heart failure. The coverage includes the equipment itself (the concentrator or tank), tubing, masks, and ongoing supplies. However, Medicare does not pay for every type of portable oxygen device, and the amount you pay depends on whether you rent or buy, which supplier you use, and whether your equipment is considered "standard" or "upgraded."

The process starts with your doctor, not with Medicare. Your physician must order oxygen therapy and specify the flow rate and duration you need. Without a written prescription, Medicare will deny any claim. Once you have that prescription, you work with a Medicare-approved supplier — not just any medical equipment company — to get your equipment. The supplier handles the paperwork with Medicare, but you are responsible for understanding what your share of the cost will be before you take the equipment home.

Key Takeaways

  • Your doctor must prescribe oxygen therapy in writing, stating the medical reason and the flow rate you need, before Medicare will consider paying for any equipment.
  • You must use a Medicare-approved supplier; equipment from non-approved vendors will not be covered, even if your doctor prescribed it.
  • Medicare covers both stationary and portable oxygen concentrators, but portable models may have higher out-of-pocket costs than stationary ones.
  • You can choose to rent or buy, and the long-term cost difference is significant — renting costs less upfront but buying may be cheaper after five years of use.
  • You pay 20 percent of the Medicare-approved amount for oxygen equipment and supplies after you meet your Part B deductible.

How Medicare decides what it will pay for

Medicare uses a system called the Durable Medical Equipment (DME) benefit to cover oxygen. "Durable" means the equipment lasts at least three years and can be used repeatedly. Oxygen concentrators — machines that pull oxygen from the air and deliver it to you through a mask or nasal cannula — may have access to. Portable concentrators, which weigh between 2 and 10 pounds and run on batteries, also may have access to, though they are treated as an upgrade to a standard stationary concentrator.

The key requirement is medical necessity. Your doctor's prescription must document why you need oxygen. Medicare reviewers will look at your oxygen saturation level (measured by pulse oximetry) and your diagnosis. If your oxygen level drops below 88 percent at rest or during activity, or if you have a may have access to diagnosis like COPD or heart failure, you are more likely to meet the medical necessity test. If your oxygen level is borderline, your doctor may need to order a test showing your oxygen drops during exercise or sleep.

Medicare also limits what it considers "reasonable and necessary." A portable concentrator is reasonable if you leave your home regularly. If you are homebound, Medicare may cover only a stationary concentrator and deny the portable model as an unnecessary upgrade. This is a common point of denial, so discuss your daily activities with your doctor when they write the prescription.

Renting versus buying: costs and timelines

You have the choice to rent or purchase your oxygen equipment. Rental is simpler upfront: you pay nothing or a small copay, the supplier maintains the equipment, and you can switch models if your needs change. Medicare pays the supplier a monthly rental fee, and you pay 20 percent of that approved amount after your deductible. Monthly copays typically range from $30 to $60 for a stationary concentrator, though portable models cost more.

Buying requires a larger upfront payment — usually $1,000 to $3,000 for a portable concentrator after your 20 percent coinsurance — but the monthly cost drops to only supplies (tubing, masks, filters). After roughly five years of rental payments, buying becomes the cheaper option. However, you are responsible for repairs and maintenance, and if the equipment breaks outside the warranty period, you pay for replacement.

Medicare has a "rental cap" rule: after you have rented equipment for 13 months, Medicare stops paying rental fees and assumes you own it. At that point, you pay only for supplies. If you have been renting and want to own the equipment outright, you can purchase it at any time, and the supplier will credit the rental payments you have already made toward the purchase price.

What you pay out of pocket

Your out-of-pocket cost depends on whether you have met your Part B deductible for the year. The Part B deductible is $240 in 2024, though this amount changes annually. Once you meet the deductible, you pay 20 percent of the Medicare-approved amount for the equipment and supplies.

The Medicare-approved amount is not the same as the supplier's asking price. Medicare sets a fee schedule for each type of equipment in each region. If a supplier charges more than the approved amount, they cannot bill you for the difference — that is called "balance billing," and it is illegal. However, you still owe your 20 percent of the approved amount.

If you choose a portable concentrator instead of a standard stationary model, you may pay more. Medicare covers a basic portable concentrator, but if you want a lighter, quieter, or longer-battery model, the supplier may charge an upgrade fee. Ask the supplier in writing what the Medicare-approved amount is and what your 20 percent share will be before you take the equipment home.

Finding a Medicare-approved supplier

Not every medical equipment company is Medicare-approved. Using a non-approved supplier means Medicare will not pay, and you will owe the full cost. To find approved suppliers in your area, use the Medicare Supplier Directory at dmepos.cms.gov or call 1-800-MEDICARE and ask for a list of approved oxygen suppliers near you.

When you contact a supplier, ask three things: Are you Medicare-approved? What is the Medicare-approved amount for the specific model I need? What will my 20 percent copay be? Get the answers in writing. Some suppliers are more helpful than others in explaining costs upfront, and it is worth calling two or three to compare.

Your doctor can recommend a supplier, but the choice is yours. If your doctor's preferred supplier is not Medicare-approved, ask your doctor to write the prescription in a way that does not tie you to that supplier. The prescription should specify the type and flow rate of oxygen, not the brand or supplier name.

Common reasons Medicare denies portable oxygen claims

The most frequent denial is lack of medical necessity. If your oxygen saturation is above 88 percent at rest, Medicare may deny the claim unless your doctor can show it drops during activity or sleep. Request a home oxygen saturation test or an exercise test before your doctor writes the prescription; this documentation strengthens your case.

A second common reason is using a non-approved supplier. Always verify approval before placing an order. If a supplier tells you they are approved but Medicare later denies the claim, contact the supplier when ready and ask them to appeal on your behalf.

A third reason is requesting a portable concentrator when Medicare determines you do not leave home often enough to need one. If you are homebound or rarely leave, Medicare may cover only a stationary concentrator. Discuss your typical week with your doctor so they can document in the prescription that portability is medically necessary for your situation.

Denials can be appealed. If Medicare denies your claim, the supplier or your doctor can file an appeal with supporting medical records. The appeal process takes time — usually 30 to 60 days — so do not assume the denial is final.

Supplemental insurance and other coverage options

If you have a Medigap (supplemental insurance) plan, it may cover some or all of your 20 percent coinsurance for oxygen equipment. Check your plan documents or call your Medigap insurer to ask what they cover for DME.

If you have a Medicare Advantage plan (Part C), your coverage for oxygen may differ from Original Medicare. Some Advantage plans cover portable concentrators more readily than Original Medicare does, while others are more restrictive. Review your plan's DME coverage or call the plan to confirm what you will pay before you order equipment.

If you are uninsured or underinsured, some oxygen suppliers offer payment plans or discounts for cash purchases. Nonprofit organizations and disease-specific groups (such as the American Lung Association) sometimes have equipment loan programs or financial information. Ask your doctor's office or a social worker whether any local programs can help.

Frequently Asked Questions

Does Medicare cover oxygen tanks, or only concentrators?

Medicare covers both. Stationary concentrators are the standard, but portable concentrators and liquid oxygen tanks are covered if your doctor prescribes them and a Medicare-approved supplier provides them. Tanks require ongoing refills, which Medicare also covers as supplies.

What if I already own a portable concentrator and want Medicare to pay for it?

Medicare will not reimburse you for equipment you bought before getting a prescription and working with an approved supplier. Going forward, you can have a new prescription written and obtain equipment through the proper channels so Medicare covers it. Keep receipts for any equipment you purchase out of pocket in case you need them for tax deductions or future claims.

Can I use my oxygen equipment when I travel?

Yes, but you need to plan ahead. If you rent, contact your supplier at least two weeks before you travel and ask them to arrange equipment at your destination or to provide a portable unit for the trip. If you own equipment, you can take it with you, but airlines have specific rules about oxygen concentrators in carry-on and checked baggage — contact your airline before you book.

Will Medicare pay for a second portable concentrator so I can have one at home and one in my car?

Medicare typically covers one concentrator. If your doctor documents that you need two units for medical reasons — for example, if you spend significant time away from home and cannot safely rely on one device — you can request a second unit, but Medicare will likely require additional medical justification and may deny it. Ask your doctor whether this is worth pursuing in your situation.

How often does Medicare pay for replacement equipment?

Medicare covers replacement equipment when your current equipment is no longer working and cannot be repaired. The supplier must document the repair attempts and the reason replacement is necessary. You cannot straightforward upgrade to a newer model because you prefer it. If you own your equipment, replacement is your responsibility unless it fails within the manufacturer's warranty.