Cost of Oxygen Therapy at Home: Equipment, Insurance, and Ongoing Expenses

Home oxygen therapy costs range from $200 to $400 per month for rental equipment or $300 to $2,500 for purchasing a portable or stationary oxygen concentrator outright. Medicare covers 80% of rental costs after the annual deductible for qualifying patients, with a 36-month rental-to-own program. Private insurance coverage varies but generally follows similar approval criteria: a documented resting SpO2 at or below 88%, or qualifying conditions with clinical evidence of need.

Equipment Options and Their Costs

Home oxygen therapy equipment falls into three main categories, each with different cost profiles and best-use scenarios.

Stationary Oxygen Concentrators

Stationary concentrators are the standard for home use. They plug into a wall outlet, draw in room air, and concentrate the oxygen by removing nitrogen. These units run continuously and are designed for patients who need oxygen during sleep, rest, or extended periods at home.

Portable Oxygen Concentrators (POCs)

Portable concentrators run on rechargeable batteries and are designed for use outside the home. They are smaller, lighter, and more expensive than stationary units. Most use pulse-dose delivery (delivering oxygen only when you inhale) rather than continuous flow.

Oxygen Cylinders (Compressed Gas Tanks)

Compressed gas cylinders are less common for primary home use but are still used as backup systems, for ambulatory patients, and in areas with frequent power outages.

“For most patients, a stationary concentrator for home use combined with a portable unit for outings provides the best balance of cost and quality of life. The total investment is significant, but the alternative of being housebound is not a real option.”

Medicare Coverage: How It Works

Medicare Part B covers home oxygen equipment as durable medical equipment (DME) when medically necessary. Here is how the coverage structure works:

Qualifying criteria:

• Resting arterial blood oxygen level (PaO2) at or below 55 mmHg, or SpO2 at or below 88%
• Or PaO2 of 56-59 mmHg / SpO2 of 89% with evidence of cor pulmonale, polycythemia, or edema from right heart failure
• Documentation from a qualifying blood gas study or oximetry test
• A Certificate of Medical Necessity (CMN) completed by your physician

Coverage structure:

• Medicare pays 80% of the approved amount after your Part B deductible ($240 in 2024)
• You pay the remaining 20% coinsurance
• Equipment is rented through a DME supplier for a 36-month period
• After 36 months of rental, ownership of the equipment transfers to you
• Medicare continues to cover maintenance, repairs, and supplies for the life of the equipment

What Medicare covers:

• Stationary oxygen concentrator or equivalent system
• Portable oxygen equipment for ambulatory use
• Oxygen tubing and connectors
• Nasal cannulas or masks
• Humidifier bottles

Estimated monthly out-of-pocket with Medicare:

Private Insurance Coverage

Most private health insurance plans cover home oxygen therapy when medically necessary, but the specifics vary significantly between plans.

Common requirements:

• Prior authorization from your insurance company
• Documentation of qualifying oxygen levels (similar to Medicare criteria)
• Use of an in-network DME supplier
• Periodic retesting to confirm ongoing need (typically every 12 months)

Coverage varies by plan type:

• PPO plans: Typically cover 70-80% after deductible for in-network DME suppliers
• HMO plans: May require referral from primary care physician and restrict DME supplier choice
• High-deductible plans (HDHPs): Full cost applies until deductible is met, then plan coverage kicks in
• Marketplace plans: DME coverage is an essential health benefit under the ACA, but cost-sharing varies

Out-of-Pocket Costs Without Insurance

For patients without insurance coverage, the full cost of home oxygen therapy breaks down as follows:

For long-term oxygen users (3+ years), purchasing a concentrator is almost always more cost-effective than renting. A $1,500 stationary concentrator pays for itself within 4 to 8 months compared to a $300/month rental.

Rent vs. Buy: Which Makes More Sense?

The rent-versus-buy decision depends on several factors:

Renting makes sense when:

• You expect to need oxygen therapy for less than 12 months (post-surgical recovery, temporary condition)
• Medicare is covering most of the cost (the 36-month rental-to-own program is essentially a subsidized purchase)
• You want maintenance and repairs included
• You are not sure which equipment type best fits your needs

Buying makes sense when:

• You expect to use oxygen therapy long-term (COPD, pulmonary fibrosis, chronic conditions)
• You are paying out of pocket without insurance
• You want a portable concentrator for travel (rental portables are often limited or unavailable)
• You have already completed a rental period and know what equipment works for you

Ongoing Costs Most People Forget

Beyond the concentrator itself, several ongoing costs add up:

• Electricity: A stationary concentrator running 16 hours per day uses approximately 300 to 600 watts, adding $30 to $50 per month to your electric bill. Running 24 hours increases this to $45 to $75
• Replacement supplies: Nasal cannulas should be replaced every 1 to 2 weeks ($1 to $3 each). Tubing should be replaced monthly ($3 to $8). Filters need replacement every 3 to 6 months ($10 to $25)
• Backup oxygen: Many physicians recommend keeping a small compressed gas cylinder as backup for power outages. Initial cost of $100 to $200 plus periodic refills
• Battery costs for portables: Additional batteries for portable concentrators cost $150 to $400 each and have a lifespan of 300 to 500 charge cycles
• Maintenance: Annual servicing of concentrators costs $75 to $200 if not covered by warranty or rental agreement

Ways to Reduce Costs

• Buy refurbished: Certified refurbished concentrators cost 30-50% less than new units. Reputable DME suppliers offer warranties on refurbished equipment
• Compare DME suppliers: Prices for the same equipment vary 20-40% between suppliers. Get at least three quotes
• Check manufacturer discount programs: Inogen, CAIRE, and other manufacturers occasionally offer promotions or payment plans
• Medicare Savings Programs: Low-income Medicare beneficiaries may qualify for programs that cover the 20% coinsurance
• Nonprofit assistance: Organizations like the COPD Foundation and American Lung Association can connect patients with financial assistance resources
• Buy supplies in bulk: Purchasing nasal cannulas, tubing, and filters in bulk (3 to 6 month supply) reduces per-unit cost by 15-25%

For more information on setting up oxygen therapy at home, including equipment selection and safety considerations, see our complete guide on oxygen therapy at home.

The Bottom Line

Home oxygen therapy costs $200 to $400 per month when renting, or $300 to $2,500 as a one-time purchase. Medicare covers 80% of rental costs for qualifying patients through a 36-month rental-to-own program, making the monthly out-of-pocket cost $54 to $88. For uninsured patients paying out of pocket, purchasing a concentrator is more cost-effective than long-term rental. Do not forget ongoing costs for supplies, electricity, and maintenance, which add $50 to $130 per month regardless of whether you rent or own.

References

1. Centers for Medicare & Medicaid Services. (2024). Medicare coverage of home oxygen equipment and supplies. Medicare.gov.
2. American Thoracic Society. (2020). Home oxygen therapy: A clinical practice guideline. American Journal of Respiratory and Critical Care Medicine, 202(10), e121-e141. DOI: 10.1164/rccm.202009-3608ST
3. Jacobs, S. S., et al. (2018). Home oxygen therapy for adults with chronic lung disease. Annals of the American Thoracic Society, 15(12), 1372-1378. DOI: 10.1513/AnnalsATS.201806-372CME
4. American Association for Respiratory Care. (2023). Clinical practice guidelines for oxygen therapy.
5. Hardinge, M., et al. (2015). British Thoracic Society guidelines for home oxygen use in adults. Thorax, 70(Suppl 1), i1-i43. DOI: 10.1136/thoraxjnl-2015-206865

Seph Fontane Pennock

Author

Seph Fontane Pennock is the founder of BaricBoost.com and Regenerated.com, a clinic directory for regenerative medicine serving 10,000+ providers across the United States. He previously built and sold PositivePsychology.com, which grew to 19 million users and became the largest evidence-based positive psychology resource on the web. Seph brings direct experience as an HBOT patient, having completed protocols at clinics across three continents while navigating mold illness, systemic inflammation, and autoimmune conditions. His treatment journey includes hyperbaric oxygen therapy, peptide protocols, NAD+ therapy, and consultations with specialists from Dubai to Cape Town to Mexico. This combination of entrepreneurial track record and lived patient experience shapes everything published on BaricBoost.com. Every article is grounded in peer-reviewed research, informed by real clinical encounters, and written for patients making high-stakes treatment decisions. Seph's focus is on bringing transparency, scientific rigor, and practical guidance to the hyperbaric oxygen therapy space.

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