Oxygen therapy provides supplemental oxygen to patients who cannot get enough on their own, but the cost of this treatment is complex and highly variable. Pricing depends greatly on the specific type of equipment used and the method of payment, such as private insurance or government programs. Since oxygen delivery is a long-term therapy, the financial commitment includes ongoing operational and maintenance expenses beyond the initial equipment cost.
Understanding Oxygen Delivery Systems
The choice of oxygen delivery method is the largest factor determining the overall cost structure for a patient. Three primary systems are used for home oxygen therapy, each with a distinct mechanism and cost profile. Compressed gas tanks are heavy cylinders filled with pure, pressurized oxygen that require frequent refills or tank swaps. Liquid oxygen systems store oxygen in an extremely cold, liquid state, providing a greater amount of oxygen in a smaller, lighter system, though they require a specialized home reservoir and evaporate over time.
Oxygen concentrators are electrically powered devices that filter and concentrate oxygen from the surrounding room air. Stationary units are larger and meant for continuous home use, while Portable Oxygen Concentrators (POCs) are smaller, battery-operated units designed for mobility. Since concentrators produce oxygen on demand, they eliminate the recurring cost of gas or liquid refills.
Initial Acquisition Costs: Purchase Versus Rental
The initial upfront cost of oxygen equipment varies dramatically depending on whether the system is purchased outright or acquired through a rental agreement. Stationary oxygen concentrators typically cost between $600 and $1,000 for a basic unit, while advanced models can be significantly higher. Portable Oxygen Concentrators (POCs) are the most expensive to purchase, often starting around $2,000 and costing up to $5,000 or more. In contrast, a compressed gas oxygen tank may cost as low as $120, while liquid oxygen systems, including a home reservoir and portable unit, generally cost between $1,500 and $1,900.
For patients who opt for rental, the monthly fees are an immediate financial consideration. Renting a stationary home oxygen concentrator often falls in the range of $150 to $375 per month, depending on the flow rate capacity. Portable oxygen concentrators command a higher monthly rental fee, typically ranging from $250 to $500. These fees are charged by Durable Medical Equipment (DME) providers and cover the use of the equipment, excluding the separate costs of oxygen refills or electricity.
Recurring Costs of Oxygen Therapy
Beyond the initial acquisition, oxygen therapy involves ongoing operational expenses that vary by equipment type. For compressed gas tanks and liquid oxygen systems, the primary recurring cost is the delivery and refill of the oxygen contents. A single refill for a compressed gas cylinder can cost between $12 and $85, with weekly deliveries and associated fees potentially adding up to several hundred dollars per month. Liquid oxygen systems require periodic delivery to refill the home reservoir, with the cost of the liquid itself quoted around $200 for a large tank, plus delivery and service charges.
Oxygen concentrators eliminate content refill costs, but they introduce a recurring expense in the form of electricity consumption. A stationary home concentrator typically uses between 200 and 400 watts per hour. Running a 350-watt concentrator continuously can add approximately $30 to $35 to the monthly utility bill, depending on local electricity rates. Concentrators also require periodic maintenance and replacement of air filters, which is a separate operational expense.
Securing Payment Through Insurance and Medicare
The final out-of-pocket expense for oxygen therapy is largely determined by the patient’s insurance coverage, with Medicare Part B having specific rules for Durable Medical Equipment (DME). Medicare generally covers medically necessary oxygen equipment and its contents, requiring a doctor’s prescription and a Certificate of Medical Necessity to establish eligibility. Unlike most other DME, oxygen equipment is always covered under a five-year rental cycle, and the patient never gains ownership of the equipment.
Medicare pays the supplier a monthly rental fee for the first 36 continuous months. The patient is responsible for a 20% coinsurance of the Medicare-approved amount after meeting the Part B deductible. This 36-month rental cap policy is a significant financial consideration, as the supplier must continue to provide the equipment, oxygen, and most supplies for the remainder of the five-year period without receiving further rental payments from Medicare. After the 36-month period, if the patient uses oxygen tanks or cylinders, they must continue to pay the 20% coinsurance for the oxygen contents each month. Private insurance plans typically follow similar DME coverage guidelines, but the specific coinsurance, deductibles, and network requirements will determine the patient’s exact financial liability.