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The rules say that plans must pay for a medical service or item if regular Medicare would pay for it in this case. 
You can find this rule at 42 Code of Federal Regulations (CFR) Section 422.101. 
 
The rules say that  E. Portable Oxygen Systems 
 
A patient meeting the requirements specified below may qualify for coverage of a portable oxygen system 
either (1) by itself, or, (2) to use in addition to a stationary oxygen system. A portable oxygen system is 
covered for a particular patient if: 
 
    The claim meets the requirements specified in subsections A-D, as appropriate; and 
    The medical documentation indicates that the patient is mobile in the home and would benefit from the use 
of a portable oxygen system in the home. Portable oxygen systems are not covered for patients who qualify for 
oxygen solely based on blood gas studies obtained during sleep. 
 
You can find this information in Medicare's National Coverage Determination (NCD) for Home Use of Oxygen 
(240.2). 
 
The rules say that a portable oxygen system is covered if the beneficiary is mobile within the home and the 
qualifying blood gas study was performed while at rest (awake) or during exercise. If the only qualifying blood 
gas study was performed during sleep, portable oxygen will be denied as not reasonable and necessary. 
 
If coverage criteria are met, a portable oxygen system is usually separately payable in addition to the stationary 
system. See exception in the related Policy Article Non-Medical Necessity Coverage and Payment Rules, 
OXYGEN EQUIPMENT, Initial 36-Months section. 
 
If a portable oxygen system is covered, the supplier must provide whatever quantity of oxygen the beneficiary 
uses; Medicare?s reimbursement is the same, regardless of the quantity of oxygen dispensed. 
 
You can find this information in Medicare's Local Coverage Determination (LCD): Oxygen and Oxygen 
Equipment (L33797). 
 
The rules say that the reasonable useful lifetime for oxygen equipment is 5 years. The RUL is not based on the 
chronological age of the equipment. It starts on the initial date of service and runs for 5 years from that date. 
 
RUL also does not take into account exchanges of equipment, new suppliers, or changes of modality 
(concentrator, gaseous, liquid). 
 
Until such time as the end date of the RUL of the stationary oxygen equipment is reached, the supplier must 
continue to furnish both the portable and stationary oxygen equipment. 
 
Providing different oxygen equipment/modalities (e.g., concentrator [stationary or portable], gaseous, liquid, 
trans-filling equipment) is not permitted unless one of the following requirements is met: 
 
    Supplier replaces the equipment with the same or equivalent item 
 
 
    Treating practitioner?s orders different equipment 
    Beneficiary chooses to receive an upgrade and signs an Advance Beneficiary Notice of Non-coverage 
(ABN) 
    CMS or the DME MAC determines that a change in equipment is warranted 
 
A new 36-month rental period does not start in the following situations:  
Providing different equipment based on a treating practitioner order or beneficiary request for an upgrade 
 
Suppliers must provide whatever quantity of oxygen contents are needed for a beneficiary?s activities both 
inside and outside the home 
 
You can find this information in Medicare's Local Coverage Article: Oxygen and Oxygen Equipment - Policy 
Article (A52514). 
 
If you want to read these Medicare rules, you can go to this website www.medicareappeal.com.