Home oxygen therapy typically costs between $800 and $3,000 or more out of pocket if you’re buying equipment directly, while monthly rental fees through insurance usually leave you paying $30 to $60 per month in coinsurance. The total you’ll spend depends on whether you rent or buy, what type of equipment you need, and whether you have Medicare or private insurance covering part of the bill.
Buying Equipment Outright
If you’re paying cash for an oxygen concentrator, the price varies widely depending on whether you need a stationary home unit or a portable device. Stationary concentrators, which plug into a wall outlet and deliver a continuous flow of oxygen, start around $795 for a basic model and run up to about $1,700 for higher-capacity units. These work well if you primarily need oxygen at home.
Portable oxygen concentrators cost more because they run on rechargeable batteries and let you move around freely. Current retail prices from major manufacturers like Inogen start around $2,695 and go up to $2,795 or higher depending on the flow rate and battery life. Some people buy both a stationary unit for home and a portable unit for errands and travel, which can push the total past $4,000. Used and refurbished concentrators are available for less, but warranties are shorter and reliability can be hit or miss.
Renting Through Medicare
Medicare Part B covers home oxygen equipment as durable medical equipment, but the structure is more complicated than a simple monthly bill. You rent the equipment from a Medicare-approved supplier for 36 months. During that time, you pay 20% of the Medicare-approved rental amount each month after meeting your annual Part B deductible. The supplier owns the equipment for a full five-year period and is responsible for keeping it in working order and providing related supplies for an additional 24 months beyond the initial rental period.
If you use oxygen tanks or cylinders instead of a concentrator, Medicare continues paying for monthly delivery of oxygen contents after the 36-month rental period ends, and you continue paying your 20% coinsurance on those deliveries. The exact dollar amount of your coinsurance depends on the Medicare-approved rate in your area and the type of equipment, but most people end up paying somewhere between $25 and $75 per month out of pocket during the rental period. A Medigap supplemental plan can reduce or eliminate that coinsurance entirely.
Qualifying for Coverage
Medicare doesn’t cover home oxygen for everyone who feels short of breath. You need a documented blood oxygen level at or below 88% (measured by pulse oximetry) or a specific arterial blood gas reading at or below 55 mmHg while breathing room air. Your doctor orders the test, and the results must be on file with the supplier.
There’s a second qualifying group for people whose oxygen levels are slightly higher, between 89% saturation or 56 to 59 mmHg on a blood gas test, but only if they also have a related condition like congestive heart failure, pulmonary hypertension, or an abnormally high red blood cell count. Some people qualify based on oxygen drops during sleep or exercise rather than at rest, though coverage in those cases may be limited to oxygen use only during sleep or only during physical activity.
The Electricity Cost Most People Forget
Oxygen concentrators run on electricity, and that ongoing cost catches many people off guard. A standard home concentrator draws about 120 to 350 watts, depending on the model and flow setting. If you run a 120-watt unit for 12 hours a day, expect to add roughly $72 per year to your electric bill. Running it around the clock pushes that closer to $144 per year.
Higher-powered units that deliver greater flow rates use significantly more electricity. A 350-watt concentrator running 24 hours a day can add about $419 per year, while a 600-watt unit at the same usage could cost over $700 annually. Research published in Scientific Reports found that some oxygen concentrators can increase an average U.S. household electricity bill by around 29% when running continuously. The average residential electricity bill was about $121 per month as of 2021, so an extra $50 or more monthly is a real burden for people on fixed incomes. None of this is covered by Medicare or most private insurance.
Private Insurance and Out-of-Pocket Costs
Most private health insurance plans cover home oxygen similarly to Medicare, treating it as durable medical equipment. Your share depends on your plan’s DME coinsurance rate, which commonly ranges from 20% to 40%. Some plans require prior authorization, and a few only cover certain types of equipment (concentrators but not liquid oxygen, for example). Check whether your plan uses a preferred supplier network, because going out of network can double or triple your cost.
If you’re uninsured or underinsured, the full cost of renting oxygen equipment from a home medical supplier typically runs $200 to $500 per month, depending on whether you need a concentrator alone or a concentrator plus portable tanks. Liquid oxygen systems, which require regular home delivery of a cryogenic reservoir, tend to cost more than concentrator-based setups because of the ongoing delivery fees.
Financial Help if You Can’t Afford It
Several paths exist for people struggling with the cost. Medicaid covers home oxygen in all states, though the specific equipment options and supplier networks vary. If your income is low enough to qualify, your out-of-pocket cost may be zero.
The Patient Advocate Foundation offers free case management to help people navigate insurance denials, apply for disability benefits, and find financial assistance programs. NeedyMeds maintains a database of manufacturer assistance programs and discount resources that can help with equipment costs. The National Organization for Rare Disorders provides financial assistance for insurance premiums, copays, and emergency expenses for people with qualifying conditions. State legislators and congressional offices can also point you toward state-specific programs that aren’t widely advertised.
Some oxygen equipment manufacturers offer refurbished units at reduced prices or payment plans that spread the cost over 12 to 24 months. If you’re buying out of pocket, it’s worth calling the manufacturer directly to ask about options that may not appear on their website.