You are being fed a line of bullpucky!!! Where are you in Ontario?
Ohip will cover $1020 (approx) of a bi level/auto machine and $780 for straight cpap. You need to fill out an ADP form (assisted devices program). Odds are your dme is going to fill it out anyway and send it in further pushing their profit margin up.
Those prices are completely over the top insane. I thought I got gouged but that is double what I paid.
Find another DME pronto. Again not sure where you are but if you let me know we can find you somone more responsible.
Unfortunately OHIP will not cover anything on internet orders shipped from the US (nor will most insurance companies but it doesn't hurt to ask).
Resmed will not allow US suppliers to ship any products to Canadians either btw.
Send me a PM will more info and I'll help you as best possible. (freakin DME's!!

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Executive in charge of talented offspring donning a Resmed S8 Elite II CPAP, and the oh so sexy Nasal Swift for Her Lt, with the pretty blue headgear. Oh, by law up here in Ontario they are required to give us heated humifiers...Mine is the H4i.