That does suck for sure, and very sorry to hear. I had my own challenge, perhaps Incan lemd some advice.
First, it was mentioned above already, look into COBRA. If you were laid off the company should have offered this to you, and the layoff will entitle you to get on the coverage, the same as you had at your job, for a huge discount. I am mot certain, but I believe it is 60-75% off due to the lay off. Check thisnout first. It is something that has to be done quickly.
Next, I would tell the DME that you plan to return the machine as it is cheaper for you to get the aame unit elseware. My guess is they dont want it back. It is like cell phone companies, when you tell them you are about to move elseware, the deals get better. The insurance company has a contract rate, and yes it is crap that the company will not do something to help resolve this situation.
If you need to get a machine, I would check craigs list or some local sites; we have one in Utah that is very popular. I had to buy a machine myself, and I was able to find an Air Sense 10 for $400; had less than 100 hours on it. There arw many out there for sale, and some hreat deals for sure.
Hope that helps
Take heart and be strong, there is a solution to this temporary inconvenience.
Did you check with your company, assuming they have not gone out of business, and asked if there is any possibility that you could add the cost of the machine to your severance package? You never know if you do not ask; and many companies do have charitable components.
Did you check with your State's unemployment/medical insurance program to see if you can be given assistance under Medicaid or another state program? This may be your best shot at finding a solution.
Did you talk with the vendor's owner or president to see if you can work out a reasonable solution. Most clerical people or mid-level functionaries don't care about anything but profit?
You may wish to speak with the editor in charge of healthcare stories at your local paper to see if they have resources that might be helpful. It makes a human interest story that is relatable. And, faced with some reputational blowback, the vendor might just become amenable to a more equitable solution.
Check with your doctor. Many DME's court doctors for referrals and might be more tractable if they know a doctor is asking for assistance.
You might try a "gofundme" campaign.
"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius