Does Medicare Cover Oxygen Equipment?

Who Qualifies for Home Oxygen

Medicare.gov says you have to meet all of its conditions. Your doctor has to confirm that your blood oxygen level is too low, that oxygen therapy would be expected to improve your health, and that your arterial blood gas level falls within a specific range. Some conditions, such as cluster headaches, can qualify you even when they aren’t tied to blood gas levels.

Those thresholds are clinical rather than financial. Under Medicare’s coverage policy for home oxygen, the main test is an arterial oxygen level (PO2) at or below 55 mm Hg, or an oxygen saturation at or below 88%, measured at rest while awake and breathing room air. Qualifying readings taken during sleep or exercise can also count, though in those cases coverage may be limited to oxygen use during sleep or exercise. A slightly higher reading, a PO2 of 56 to 59 or a saturation of 89%, can qualify when it comes with a condition such as edema suggesting heart failure, pulmonary hypertension, or a high red blood cell count. Your doctor will know how to document which category applies. The important idea is that the qualification is based on a test rather than on how short of breath you feel.

The qualifying tests are generally done in person by your treating practitioner or a qualified professional, and Medicare’s policy says unsupervised home readings generally don’t count. Testing usually involves one of two methods:

• Pulse oximetry, which uses a sensor on your fingertip to estimate the oxygen saturation in your blood.
• An arterial blood gas test, which measures oxygen directly from a blood sample taken from an artery.

Your doctor also has to give the supplier a written order and keep records showing the need. Expect paperwork. Under the policy’s documentation rules, people who qualify through the narrower 56-to-59 / 89% category generally need a repeat qualifying test between about the 61st and 90th day after starting oxygen, and payment can stop if it isn’t done. The rules for other situations vary, so ask your doctor and supplier whether and when you will be retested, and write down the dates. Missing a required retest is an avoidable way to lose coverage.

What Medicare Covers: The Equipment and the Extras

Medicare.gov says Part B covers the oxygen delivery system, storage containers, and the tubing and supplies needed for therapy at home. In practice that generally means a stationary concentrator or another oxygen system, the cannula or mask you breathe through, and related accessories. Which accessories your supplier includes can vary, so ask.

The monthly rental payment is meant to include more than the box itself. According to Medicare.gov, the rental covers the equipment, tank refills where applicable, tubing, and maintenance and servicing. That is the reason oxygen is not a purchase you make once and then handle on your own: the supplier is responsible for keeping the equipment working and for refilling or replacing the oxygen source.

Portable systems are covered too, when they are medically needed, with one catch. Under Medicare’s policy, portable oxygen is covered only when the qualifying test was done at rest while awake or during exercise, so a qualification based on sleep testing alone generally doesn’t include a portable unit. If your records show you can move around and would benefit from oxygen away from your stationary unit, a portable system can be added to or used in place of the home concentrator. Which portable system you receive, such as portable tanks, liquid oxygen, or a portable concentrator, depends on what the supplier carries and what your documentation supports. Ask which portable options are available to you and why a particular one was chosen.

The 36-Month Rental and the 5-Year Cycle

This is the part of the benefit that surprises people most, so it is worth walking through the timeline.

The timeline below sums up the cycle described on Medicare.gov.

Time period	What happens
Months 1 to 36	You rent the equipment from an enrolled supplier
Through year 5	Medicare keeps paying while you need oxygen; the supplier maintains the equipment
After 5 years	Supplier no longer has to provide it; new equipment starts a new 36-month rental
Ownership	Generally none; oxygen is a rental benefit

Medicare.gov says you rent oxygen equipment for 36 months. After that, Medicare continues to pay your supplier to provide oxygen and equipment for as long as you need it, for up to five years after you started using it. Throughout that time, the supplier has to keep the equipment in working order and provide the related supplies, as long as you still have a medical need for oxygen. Medicare.gov also says that starting six months after the 36-month period ends, you may owe coinsurance every six months for maintenance and servicing of an oxygen concentrator or equipment that fills portable tanks, and the supplier can’t charge for this unless it comes to your home to inspect and service the equipment.

At the five-year mark, the supplier is no longer obligated to continue providing the equipment. If you still need oxygen, you can obtain new equipment, and that starts a fresh 36-month rental period. Medicare.gov notes there is no limit on how many of these cycles you can go through, as long as your medical need continues.

Two takeaways follow. First, you don’t own the oxygen equipment you are using, and there is no point at which the rental payments convert to ownership in the way a CPAP machine’s can. The equipment generally stays the property of the supplier. Second, if your five-year point is approaching, call the supplier or your doctor well ahead of time so there is no gap in service when the old cycle ends.

What You Pay

Oxygen equipment is a Part B benefit. After you meet the Part B deductible, which is $283, you pay 20% of the Medicare-approved amount, and Medicare pays the rest. Medicare.gov says the monthly rental includes the equipment, refills, tubing and maintenance, so the 20% applies to that bundled payment. After the 36 months, you may also owe coinsurance for the periodic maintenance visits described above.

The 20% has no annual cap in Original Medicare. Most people pay it month after month for as long as they use oxygen. If you have a Medigap policy, most standardized plans pay the Part B coinsurance, so your share may be zero or close to it, depending on the plan letter. Our pages on Plan G and Plan N explain how each handles outpatient cost-sharing, and a rental like this is the kind of recurring expense where the difference between plans adds up.

If you have Medicare Advantage, your share may be a flat copay or coinsurance set by the plan instead of the 20%. Every Medicare Advantage plan also has an annual out-of-pocket maximum that limits what you pay in covered services in a year. Our post on Medicare Advantage out-of-pocket maximums explains how those limits work.

Choosing and Using a Supplier

Medicare.gov says Medicare pays only for equipment from suppliers enrolled in Medicare, and that you should confirm your suppliers will accept assignment, which means they agree to take the Medicare-approved amount as full payment. If a supplier doesn’t participate or won’t accept assignment, you may be charged more, and for rented equipment Medicare.gov says the supplier must accept assignment for all rental months or you could be asked to pay the full cost up front and be reimbursed later. For oxygen, which is rented month after month, confirm the supplier accepts assignment for every month of the rental, not only the first.

Questions worth asking any supplier:

• Do you accept assignment for the entire rental?
• What equipment will I receive, and what is the portable option?
• How do deliveries and refills work, and how do I reach someone after hours if I’m running low?
• What happens if the power goes out?
• What is your policy if I travel?

Medicare.gov’s advice on running low is blunt: contact your supplier immediately. Keep their phone number somewhere you can find it fast, and keep a backup plan with your doctor if you ever have trouble reaching them.

You are generally allowed to switch suppliers. Because the rental clock and the five-year cycle can be affected, ask both the current and the new supplier how a switch would be handled before you act, and try to avoid any gap in service. If you have a Medicare Advantage plan, you may need to use a supplier in the plan’s network, so check first.

Competitive Bidding and Where You Live

For some categories of equipment, Medicare has used competitive bidding, in which only suppliers that won a contract can serve people in certain areas. The specifics, including which items and regions, change over time. CMS’s current description of its next bidding round, targeted to start no later than January 1, 2028, lists other product categories, such as continuous glucose monitors, insulin pumps, ostomy and urological supplies and certain off-the-shelf braces, and does not list oxygen. Because those plans can change, ask your supplier whether your area has a contract requirement for your equipment, or call 1-800-MEDICARE. If you move, the answer may change, so mention your oxygen equipment to both your supplier and your plan before you pack.

What Medicare Doesn’t Cover

A few limits are worth knowing:

• Medicare doesn’t pay for you to purchase an oxygen concentrator on your own. Coverage is for rental through an enrolled supplier.
• Equipment bought outside a Medicare supplier relationship, including some portable devices sold online, won’t be reimbursed.
• If you do not meet the testing criteria, Medicare will generally not cover oxygen, even if you or a relative feel it would help.
• After the five-year point, you are not automatically entitled to keep the same machine.

If you fall outside the criteria, ask your doctor whether retesting under different conditions is appropriate, such as during sleep or exertion, since coverage can apply to those situations when they are documented. This is a medical judgment, and neither we nor the supplier can make it for you.

Travel, Power Outages and Safety

Oxygen therapy affects how you travel. Coverage of portable equipment is meant to keep you mobile, but arrangements for trips depend on your supplier and your plan. If you expect to be away from home for an extended period, talk to the supplier in advance about whether they can arrange service where you are going. Airlines also have their own rules for portable oxygen devices, so you would need to confirm those directly with the airline.

At home, follow the safety instructions from your supplier and doctor. Oxygen supports combustion, which is why there are firm rules about smoking and open flames near equipment. Keep a plan for power interruptions if you use an electric concentrator, since many suppliers provide backup cylinders for that purpose. Our guide to Medicare for caregivers may be useful if you are helping a parent or spouse arrange this equipment.

Frequently Asked Questions

Does Medicare pay for portable oxygen concentrators?

Medicare covers portable oxygen systems when you are mobile in the home and your qualifying test was done awake at rest or during exercise (a sleep-only qualification generally doesn’t support a portable unit), but coverage is generally structured as a rental through a Medicare-enrolled supplier rather than a purchase. The type of portable system depends on your documentation and what the supplier provides.

How long does Medicare rent oxygen equipment?

Medicare.gov says you rent for 36 months, and Medicare then continues to pay your supplier for as long as you need oxygen, for up to five years after you started. After five years, you can get new equipment, which begins a new 36-month rental period.

Do I ever own my oxygen equipment under Medicare?

Generally no. Oxygen is a rental benefit, and the equipment typically remains the supplier’s. That is different from some other equipment, such as CPAP machines, which can become yours after the rental period if you meet Medicare’s requirements.

What do I pay for oxygen under Original Medicare?

After your Part B deductible, you pay 20% of the Medicare-approved amount, and the rental includes the equipment, refills, tubing and maintenance. A Medigap policy or other coverage may pay that 20%.

What if my oxygen is running low?

Medicare.gov says to contact your supplier immediately. Keep the supplier’s contact information handy and ask them about their after-hours process before you need it.