Outpatient Oxygen Use
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Governs medical necessity criteria, reauthorization, exclusions, and coding for outpatient/home oxygen therapy and related oxygen delivery systems for pediatric and adult members/enrollees of the health plans affiliated with Centene Corporation (applies to Arizona Complete Health members as part of Centene policies).
Updated all criteria instances of 'blood gas study' to include 'or pulse oximetry measurement' and changed age thresholds from ≥21 to ≥18 for adults and <21 to <18 for pediatrics.
Edited portable oxygen criteria to include option for 'mobile within community' in addition to 'within the home' and reorganized portable oxygen criteria; added pediatric portable oxygen system criteria.
Added CPT/HCPCS code E0447 to the coding table (portable liquid oxygen contents).
Updated recertification timing in Criteria IV.A. from 30 days to 90 days prior to the date of recertification.
Coverage and Medical Necessity Criteria
Initial therapy — Adults (≥ 18 years)
Covered when ALL of the following are met
(Section I.A)
(Section I.B.1)
(Section I.B.2)
(Section I.C)
(Section I.D)
Initial therapy — Pediatrics (< 18 years)
Covered when ALL of the following are met
(Section II.A)
(Section II.B)
(Section II.C)
Reauthorization — Adults (≥ 18 years)
Reauthorization is covered when meeting the following
(Section III.A)
(Section III.A.1-3)
(Section III.B)
Reauthorization — Pediatrics (< 18 years)
Covered when ALL of the following are met
(Section IV.A)
(Section IV.B)
(Section IV.C)
Not medically necessary / Exclusions
(Section V)
Stationary oxygen for cluster headache
Covered when ALL of the following are met
(Section VI.A)
High-level coverage criteria and administrative rules
Covered when ALL of the following are met as specified in the detailed criteria sections:
Applies to initial and recertification criteria.
Replaces prior ≥21 / <21 cutoffs.
See detailed portable oxygen sections for specifics.
Updated from 30 days.
Applies to equipment selection decisions.
Oxygen concentrators are considered not medically necessary for conditions in which systemic hypoxemia is not documented. Examples explicitly listed in the policy include: angina pectoris in the absence of hypoxemia; breathlessness without cor pulmonale or evidence of hypoxemia; severe peripheral vascular disease with local desaturation but without systemic hypoxemia; shortness of breath or dyspnea in pediatric patients without evidence of hypoxemia; and terminal illnesses that do not affect the ability to breathe.
The policy text that previously referenced an alternative treatments clause (I.E.) has been removed and is no longer present in this document; there is no retained requirement or exception for alternative therapies in the current criteria language.
Refer to the exclusions list for explicit noncoverage: oxygen concentrators are not medically necessary for the non‑hypoxemic conditions enumerated in Section V, including angina without hypoxemia, breathlessness without cor pulmonale or evidence of hypoxemia, localized desaturation from peripheral vascular disease without systemic hypoxemia, pediatric dyspnea without hypoxemia, and terminal illnesses that do not impair breathing.
When selecting oxygen equipment, the policy applies a cost‑preference rule: if a medically necessary, lower‑cost item exists and will meet the member's clinical needs, a request for a higher‑cost device may be denied. This cost‑preference principle is used to determine equipment authorizations and denials.
HCPCS / CPT Codes and Clinical Thresholds
| E0424 | Stationary compressed gaseous oxygen system, rental; includes container, contents, regulator, flowmeter, humidifier, nebulizer, cannula or mask, and tubing. |
| E0425 | Stationary compressed gas system, purchase; includes regulator, flowmeter, humidifier, nebulizer, cannula or mask, and tubing. |
| E0430 | Portable gaseous oxygen system, purchase; includes regulator, flowmeter, humidifier, cannula or mask, and tubing. |
| E0431 | Portable gaseous oxygen system, rental; includes portable container, regulator, flowmeter, humidifier, cannula or mask, and tubing. |
| E0433 | Portable liquid oxygen system, rental; home liquefier used to fill portable liquid oxygen containers, includes portable containers, regulator, flowmeter, humidifier, cannula or mask and tubing, with or without supply reservoir and contents gauge. |
| E0434 | Portable liquid oxygen system, rental; includes portable container, supply reservoir, humidifier, flowmeter, refill adaptor, contents gauge, cannula or mask, and tubing. |
| E0435 | Portable liquid oxygen system, purchase; includes portable container, supply reservoir, flowmeter, humidifier, contents gauge, cannula or mask, tubing and refill adaptor. |
| E0439 | Stationary liquid oxygen system, rental; includes container, contents, regulator, flowmeter, humidifier, nebulizer, cannula or mask, & tubing. |
| E0440 | Stationary liquid oxygen system, purchase; includes use of reservoir, contents indicator, regulator, flowmeter, humidifier, nebulizer, cannula or mask, and tubing. |
| E0441 | Stationary oxygen contents, gaseous, 1 month ' s supply = 1 unit. |
| E1390 | Oxygen concentrator, single delivery port, capable of delivering 85 percent or greater oxygen concentration at the prescribed flow rate. |
| E1391 | Oxygen concentrator, dual delivery port, capable of delivering 85 percent or greater oxygen concentration at the prescribed flow rate, each. |
| E1392 | Portable oxygen concentrator, rental. |
| E1405 | Oxygen and water vapor enriching system with heated delivery. |
| E1406 | Oxygen and water vapor enriching system without heated delivery. |
| K0738 | Portable gaseous oxygen system, rental; home compressor used to fill portable oxygen cylinders; includes portable containers, regulator, flowmeter, humidifier, cannula or mask, and tubing. |
| S8120 | Oxygen contents, gaseous, 1 unit equals 1 cubic foot. |
| S8121 | Oxygen contents, liquid, 1 unit equals 1 pound. |
| E0447 | Portable oxygen contents, liquid, 1 month's supply = 1 unit, prescribed amount at rest or nighttime exceeds 4 liters per minute (LPM). |
| E1390 | Oxygen concentrator, single delivery port, capable of delivering 85 percent or greater oxygen concentration at the prescribed flow rate. |
| E1391 | Oxygen concentrator, dual delivery port, capable of delivering 85 percent or greater oxygen concentration at the prescribed flow rate, each. |
| E1392 | Portable oxygen concentrator, rental. |
| E1405 | Oxygen and water vapor enriching system with heated delivery. |
| E1406 | Oxygen and water vapor enriching system without heated delivery. |
| K0738 | Portable gaseous oxygen system, rental; home compressor used to fill portable oxygen cylinders; includes portable containers, regulator, flowmeter, humidifier, cannula or mask, and tubing. |
| S8120 | Oxygen contents, gaseous, 1 unit equals 1 cubic foot. |
| S8121 | Oxygen contents, liquid, 1 unit equals 1 pound. |
Prior Authorization, Documentation, and Billing Guidance
Portable oxygen denial rule
If the only qualifying blood gas study or pulse oximetry measurement was performed during sleep, portable oxygen will be denied as not reasonable and necessary.
- Portable oxygen requests require the qualifying measurement to be obtained while the member is awake (rest) or during exercise; sleep-only qualifying measurements are not acceptable.
Cost-effective alternative denial risk
If a medically necessary, lower-cost item exists and will suit the member's medical needs, a higher-cost item will be denied.
- Cost-preference enforcement applies when a less expensive medically appropriate alternative is available.
- Providers should document why a higher-cost item is required if no suitable lower-cost alternative exists.
Clinical Background and Definitions
Oxygen therapy is the administration of oxygen at concentrations greater than ambient air to treat or prevent manifestations of hypoxemia. Hypoxemia can result from hypoventilation, ventilation–perfusion mismatch, shunt, diffusion limitation, or low inspired oxygen and is documented using arterial blood gas measurements (PaO2) or pulse oximetry (SpO2). Continuous home oxygen therapy, or long‑term oxygen therapy (LTOT), is intended for patients with chronic lung disease who meet specified laboratory thresholds (for example, PaO2 ≤ 55 mmHg or SpO2 ≤ 88% at rest) and has demonstrated benefit for appropriately selected hypoxemic patients.
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