Summary: A new study reveals that the electricity costs of running in-home durable medical equipment (DME)—such as CPAPs, oxygen concentrators, and ventilators—can significantly burden patients, with annual costs ranging from $2 to nearly $700 depending on device type, usage, and local utility rates. These hidden costs are often unrecognized and are not covered by Medicare or Medicaid, potentially discouraging use among financially strained patients who most need these devices.
Key takeaways:
- Electricity costs for DMEs can raise a household’s monthly energy bill by up to 40%, especially in high-rate states like Hawaii, California, and Massachusetts.
- CPAPs cost around $21–$41 per year, but devices like high-wattage oxygen concentrators and dialysis machines can cost $240–$279 annually.
- These financial burdens disproportionately affect patients with compromised health and low incomes, who are also the most reliant on such devices.
- Current insurance policies do not cover the electricity costs of DME, even though some cover other social determinants of health.
- The study’s authors suggest that financial support and policy changes—such as disconnection protections and expanded insurance coverage—could alleviate these hidden costs.
Durable medical equipment (DME) can require significant amounts of energy to operate, a hidden financial burden that falls on patients.
A new study details the annual electricity costs of running common in-home DME, ranging from CPAPs, BiPAPs, oxygen concentrators, ventilators, and others. It reports that users face annual electricity increases ranging from $120 to more than $700, depending on device type, usage frequency, and state electricity prices.
Usage costs can increase a household’s monthly energy bill by up to 40% and even higher in states with elevated electricity rates, such as Hawaii, California, and Massachusetts, according to a team of electricity, energy market, and economics researchers from Indiana University, Regenstrief Institute, University of Pennsylvania, and Yale University.
“Because we know health and wealth generally go hand in hand, people whose health is very compromised tend also to face strained financial circumstances,” says study co-author Kosali Simon, PhD, MA, a Regenstrief research scientist and IU professor, in a release. “This is not a small expense for them. Patients are plugging in DMEs without knowing how much it will cost, but they may be in high need of that device. When we look at these numbers, depending on the state, cost increases could be burdensome.
“The ability to have dialysis available at home rather than keep going into a center could improve quality of life but could be a substantial cost. The takeaway is that while it might not seem like a big issue for the average healthy person, among people whose health really requires them to have these specialized machines, it could end up being a substantial burden.”
Annual Electricity Costs for CPAPs and Other Common DME
The paper finds that the annual operational costs are as follows, assuming the person uses the device for 8 hours a day.
- Oxygen concentrator (120W): $47.86
- Oxygen concentrator (350W): $139.61
- Oxygen concentrator (600W): $239.32
- CPAP (53W): $21.14
- CPAP (80W): $31.91
- CPAP (104W): $41.48
- BiPAP (53W): $21.14
- BiPAP (80W): $31.91
- BiPAP (104W): $41.48
- Ventilator (71W): $27.92
- Ventilator (90W): $35.90
- Ventilator (120W): $47.86
- Peritoneal kidney dialysis (100W): $39.89
- Peritoneal kidney dialysis (600W): $239.32
- Peritoneal kidney dialysis (700W): $279.21
- Feeding pump (9W): $3.59
- Feeding pump (12W): $4.79
- Feeding pump (40W): $15.95
The following annual operational costs are for if a person uses the device for 1 hour a day:
- Nebulizer (50W): $2.49
- Nebulizer (110W): $5.48
- Nebulizer (204W): $10.17
- Power scooter (792W): $39.49
- Power scooter (960W): $47.86
- Power scooter (1800W): $89.75
- Hospital bed (300W): $14.96
- Hospital bed (960W): $47.86
- Hospital bed (1200W): $59.83
- IV pump (15W): $0.75
- IV pump (20W): $1.00
- IV pump (40W): $1.99
- Suction machine (70W): $3.49
- Suction machine (90W): $4.49
- Suction machine (180W): $8.97
Electricity costs could limit patients’ use of necessary in-home medical devices, the authors say While some Medicaid and Medicare programs cover expenses related to social drivers of health, they do not currently cover the electricity costs of DME. Addressing these hidden costs through insurance coverage could reduce financial stress.
Identification of these cost burdens have been provided to help inform policymakers and to encourage discussion around tightening disconnection protections and instituting more expansive health insurance coverage.
The paper states, “These estimates reveal the importance of financial support, such as government incentives or medical insurance, for budget-constrained households that must run DMEs and rely on them for their long-term health.”
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