Quick Answer
Medicare Part B covers oxygen therapy equipment and supplies as Durable Medical Equipment (DME) when medically necessary. You must have a doctor's prescription, documented lung disorder, and blood oxygen saturation below 88% at rest (or below 90% during activity). Medicare covers 80% of the rental cost after your Part B deductible. Equipment is rented for 36 months, and the supplier must continue providing oxygen for up to 5 years total.
Coverage Comparison by Plan Type
| Plan Type | Coverage | Notes |
|---|---|---|
| Stationary oxygen equipment | Covered | Covered as DME under Part B; rented for 36 months from approved supplier |
| Portable oxygen concentrators | Covered | Covered when doctor states you need constant oxygen therapy outside the home |
| Oxygen supplies & accessories | Covered | Tubing, storage containers, and accessories included in rental |
| Equipment servicing | Covered | Part B covers servicing every 6 months after the 36-month rental period |
| Humidifier (with oxygen machine) | Covered | Covered if the oxygen machine works with a humidifier |
| Medicare Advantage (Part C) | Covered | Must cover at least the same oxygen therapy benefits as Original Medicare |
| Medicare Supplement (Medigap) | Covered | Covers the 20% Part B coinsurance for oxygen equipment and supplies |
Understanding Your Coverage Options
Original Medicare (Part B)
Covers 80% of the rental cost for oxygen equipment after Part B deductible
Equipment is rented for 36 months from a Medicare-approved supplier
After 36 months, supplier must continue providing oxygen for 24 more months
After 5 years total, you can renew your contract or choose a new supplier
Covers servicing of oxygen concentrators every 6 months after rental period
Original Medicare (Part A)
Covers oxygen therapy during inpatient hospital stays
Covers oxygen therapy in skilled nursing facilities
Part A deductible applies ($1,736 in 2025)
Inpatient oxygen is included in the hospital stay cost
Medicare Advantage (Part C)
Must cover at least the same oxygen therapy benefits as Original Medicare
May have different copayment or coinsurance amounts
May require use of specific DME suppliers within the plan's network
Some plans may offer additional respiratory therapy benefits
Medicare Supplement (Medigap)
Covers the 20% Part B coinsurance for oxygen equipment and supplies
Depending on plan, may cover the Part B deductible
No network restrictions - use any Medicare-approved DME supplier
Provides consistent monthly cost protection for ongoing oxygen therapy
Oxygen Therapy Cost Estimates
| Item | Estimated Cost |
|---|---|
| Part B deductible (2025) | $283 annually |
| Oxygen equipment rental (your share) | 20% of Medicare-approved amount |
| Monthly oxygen supplies | 20% coinsurance (included in rental) |
| Equipment servicing (after 36 months) | 20% coinsurance every 6 months |
| With Medigap Plan G | Part B deductible only ($283/year) |
| Purchased equipment (not recommended) | Higher out-of-pocket; rental is more cost-effective |
✦ Important Exceptions & Limitations
Oxygen Saturation Must be Below...
Oxygen saturation must be below 88% at rest or below 90% during activity to qualify
You Must Have a Written...
You must have a written prescription from your doctor for oxygen therapy
Equipment Must be Rented -...-...
Equipment must be rented - not purchased - from a Medicare-approved supplier
Portable Oxygen Concentrators Require Proof...
Portable oxygen concentrators require proof that you need constant oxygen therapy outside the home
After 5 Years, Your Need...
After 5 years, your need for oxygen must be reevaluated before renewing
Medicare Does not Cover Oxygen...
Medicare does not cover oxygen equipment from non-approved suppliers
✦ Frequently Asked Questions
David Haass
AuthorDavid Haass is a licensed Medicare expert and member of the Forbes Finance Council who has been helping beneficiaries navigate their Medicare options.
Ashlee Zareczny
ReviewerAshlee Zareczny is a licensed Medicare agent in all 50 states dedicated to educating those eligible for Medicare.