Posted by David at 03:21 PM on Jun 6, 2007 in HEARING AIDS, INDUSTRY NEWS
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I hear what you all are saying. Ive worked on the business side of this industry since 1998. I have a pretty good idea of who is paying what and why. The fact is you are ALL right. Some shops charge more than others, some give better service than others. Why should free enterprise stop at the hearing aid shop owners door? On the other hand, as consumers, we have to smarten up! Don't be deceived by the ads! We should spend at least as much time finding the right person to entrust our hearing health to as we do to finding someone to take care of our children. Both are precious. Think of your practitioner as a "life long hearing coach" then go find one you trust, do your own research on devices (you do it on cars!), then invest as much as you can afford into improving your life.
Haven't seen the movie "Sicko" yet - so I wonder if they addressed the issue of insurance companies not covering hearing aids?
As a mid-twentysomething with a severe-profound loss, I firmly believe it is on the shoulders of the Baby Boomers to put this pricing issue to rest - after all, you command the majority of the buying power in this country (USA), not to mention being the driving force behind politics. AARP anyone???
Btw, my Phonak Perseo BTEs cost me over $6,000 - looks like I'll be clipping coupons for the rest of my life :(
Regarding the price of hearing aids, I've seen the same explanations from audiologists in numerous places online. But, they fail to mention that many audiologists also charge for the appointment and follow up visits, so the markup covering their costs doesn't pass muster to me. Ultimately, the Web will rip up the cozy arrangement as it has for music, videos and other products. You can find brand name BTEs for thousands less on the Web from reputatable dealers. I do wish CIC's were available online somehow. What audiologists do is shameful -they recommend products that they then reap huge profits on. It's illegal in the U.S. at least for a doctor to do that. Audiologists should charge for their services and then offer hearing aids at a standard retail price - because consumers are paying for their expertise not their marketing prowess.
Hearing aids ARE expensive! I do not disagree with that.
As an Audiologist, the price of hearing aids reflects the time spent with your practitioner, as well as the incredible amount of research funded to improve the hearing aids' performance, especially to reduce that pesky background noise while improving speech clarity.
The mark-up IS high on hearing aids compared to, say, grocery mark-up. It is a low volume business, and the practitioner is running a business that will hoefully succeed so that you don't have a fly-by-night operation that closes its doors before you reap the benefits of your warranties and guarantees.
If insurance companies do begin to pay for hearing aids, my guess is that most practitioners will not accept insurance, as in reality it will be very difficult to stay in business. OR, you will be charged office visits and adjustments aside from the hearing aid cost, which over the long haul will probaby be equal to or greater than what you might have paid to begin with. OR you will be fit with the least bang for the insurance company's buck, which is not to say that the ppractitioner is being unethical, but will actually LOSE money based on the contracts a lot of insurance companies demand.
I've recently purchased a pair of Starkey Destinys, I visited my supplier to get the programme on them changed slightly and he was going on about these new Phonaks he had just got in. I think it was the microPower range he was talking about (I live in the UK). They are selling those for £1795 per aid - as much as I would like a top of the range aid, I cannot afford to pay over 3k for a pair.
I did ask him if he thought the prices of aids would drop at some point in the future and his response was, "I don't think so. You are getting cutting edge tech here and that's why they are expensive".
Do you have any stats on manufacturing costs for aids versus retail prices? It would be *very* interesting to see the difference between the two.
Cheers,
Steve.
The largest markup is not from the manufacturers but from the hearing dispensors themselves, the problem is mostly in the USA rather then in Europe. I think the biggest change will occur when insurance companies are made to provide hearing aids for people that need them. Then we will see the prices fall as insurance companies negotiate for better pricing. If you knew what the VA paid for hearing aids you would be shocked at the price difference.
