Medicare Payments to Suppliers for Oxygen and Oxygen Equipment

Medicare covers reasonable and necessary durable medical equipment, prosthetics, and orthotics supplies, such as oxygen and oxygen equipment (Social Security Act §§ 1861(n), (s)(6), (8), and (9) and § 1862 (a)(1)(A)). For calendar year 2023, Medicare paid more than $674 million for oxygen and oxygen equipment. CMS has consistently identified high rates of improper payment for oxygen and oxygen equipment through its Comprehensive Error Rate Testing program. Upon request, a supplier must provide documentation, including records from the treating practitioner, indicating that oxygen and oxygen equipment were reasonable and necessary for an enrollee's condition (42 CFR § 410.38(d)(3)). We will determine whether Medicare paid suppliers for oxygen and oxygen equipment according to Medicare requirements.

Announced or Revised	Agency	Title	Component	Report Number(s)	Expected Issue Date (FY)
October 2024	Centers for Medicare and Medicaid Services	Medicare Payments to Suppliers for Oxygen and Oxygen Equipment	Office of Audit Services	OAS-24-09-012	2026