Oxygen therapy is a medical treatment that provides supplemental oxygen to patients who cannot get enough on their own, often due to conditions such as Chronic Obstructive Pulmonary Disease (COPD), severe asthma, or pulmonary hypertension. This intervention is prescribed when a patient’s blood oxygen levels fall below a certain threshold, typically determined through arterial blood gas tests or pulse oximetry. The expense of this therapy is highly variable, making the true daily cost difficult to estimate without considering all the contributing factors. Determining the final daily or monthly expense requires analyzing the specific equipment used, the operational costs, and the extent of insurance coverage.
Cost Differences by Oxygen Delivery System
The largest factor influencing the cost of oxygen therapy is the delivery system prescribed, which dictates the primary monthly equipment fee. Medical equipment suppliers typically bill for oxygen equipment on a monthly basis. Without insurance coverage, monthly rental fees for oxygen equipment can range from approximately $175 to over $1,000, depending on the device and supplier.
Oxygen concentrators are the most common solution. These electric-powered devices draw air from the environment and separate nitrogen to deliver concentrated oxygen. Stationary home concentrators are often rented monthly, with private-pay rates generally falling between $175 and $500 per month for a standard 5-liter-per-minute unit. Portable oxygen concentrators (POCs), which are lighter and battery-operated for mobility, typically command a higher monthly rental fee, sometimes exceeding $400.
Compressed gas tanks or cylinders store oxygen at extremely high pressure, often 2,000 pounds per square inch (PSI) or more. The cost structure involves a rental fee for the tanks plus a separate charge for each refill or tank swap. Refill costs for common portable tanks, like an E-cylinder, can be around $25 to $60 per tank. Total daily costs fluctuate based on the patient’s prescribed flow rate and frequency of use.
Liquid oxygen (LOX) systems are typically reserved for patients needing a high flow rate or extended portability, as liquid oxygen is stored in a highly concentrated, cryogenic state. The home unit is a stationary reservoir refilled by the supplier, and the patient carries a small, portable tank filled from the reservoir. This system often presents the highest cost due to specialized handling and storage requirements, with a single large dewar refill potentially costing around $200.
Operational and Ancillary Expenses
Beyond the primary equipment rental, several operational and ancillary expenses contribute significantly to the true daily cost of oxygen therapy. For patients using oxygen concentrators, the cost of electricity to power the device 24 hours a day can become a noticeable expense. Stationary concentrators typically consume between 300 and 600 watts of power.
Based on an average national electricity rate of $0.13 per kilowatt-hour, a concentrator running at 350 watts continuously can add approximately $30 to $43 to a patient’s monthly utility bill. This translates to a daily cost of about $1.00 to $1.43. Portable concentrators are more energy-efficient, using less power, though the cost of recharging their battery packs must also be considered.
The usage rate prescribed by a physician directly impacts the cost across all systems. A higher flow rate, measured in liters per minute (LPM), causes compressed gas or liquid oxygen tanks to deplete faster, necessitating more frequent and costly refills. For concentrators, a higher flow rate demands more power, which increases electricity consumption and the operational expense.
Consumable supplies and maintenance fees are another set of variable costs. Items necessary for safe and effective therapy include:
- Nasal cannulas
- Specialized masks
- Connecting tubing
- Replacement filters
While some monthly equipment rental fees include these supplies, patients paying out-of-pocket may incur separate charges for items like tubing or cannulas. Suppliers may also charge delivery fees for equipment setup or tank resupply, which can range from $25 to $100 for a one-way trip.
Understanding Coverage and Payment Options
For many patients, the impact of oxygen therapy costs is mitigated by insurance coverage, as the equipment falls under the category of Durable Medical Equipment (DME). Medicare Part B offers coverage for medically necessary oxygen equipment rental and supplies. Medicare pays 80% of the approved amount after the annual Part B deductible is met, leaving the patient responsible for the remaining 20% coinsurance.
Medicare employs a 36-month rental cap rule for oxygen equipment. During this period, Medicare makes monthly payments to the supplier, and the patient pays their 20% coinsurance, which covers the equipment, supplies, and maintenance.
After the initial 36 months, the supplier must continue to provide the equipment and necessary oxygen contents or supplies for an additional 24 months, totaling five years of service. During the final 24 months, the patient is only responsible for the 20% coinsurance on the contents and maintenance.
Private health insurance plans, including Medicare Advantage plans, also cover oxygen therapy. However, the specifics of deductibles, copayments, and network restrictions vary greatly by plan. Patients must often obtain pre-authorization from their private insurer before starting therapy to ensure coverage and avoid unexpected out-of-pocket costs.
The patient’s out-of-pocket costs typically include the annual Part B deductible (which was $257 in 2025) and the ongoing 20% coinsurance on the monthly rental fee. For those who cannot afford these expenses, programs like Medicaid, which varies by state, may offer additional coverage for DME. Supplemental insurance policies, such as Medigap plans, can also help cover the 20% coinsurance and the Part B deductible, significantly reducing the final financial burden.