Why Are Hearing Aids So Expensive?
Many first time buyers of hearing aids experience a serious case of sticker shock. Here's a simple explanation of why quality hearing aids are so expensive - and why they're worth every penny!
When a consumer comes into my hearing center, someone just like you, the first question that usually comes up is "How much?" It's a natural first question, but not necessarily the best place to start thinking about making a hearing aid purchase.
A quality hearing aid is expensive, no doubt about it. But, as I explain to my customers, this is a quality of life decision, NOT simply a hearing decision. And just as you'd see an eye doctor when vision loss is detected, you now seek a hearing solution. And often, you run right into a full-blown case of sticker shock.
And who can blame you with economy models starting at around $1,000 per ear!
Those Darned Assisted Listening Devices
How many infomercials have you seen selling assisted listening devices for $14.95? These TV spots run day and night. Unfortunately, these commercials set the bar pretty low when compared to a quality hearing device.
So, I begin the education process. As a hearing aid practitioner, it's my job to fit the right device to each of my customers to find the right hearing aid for you. But in order for me to perform my job, and subsequently improve the lives of those who wear the hearing aids I maintain, I have to explain to you, my client, why true hearing aids are so expensive when compared to the assisted listening devices (ALDs) sold on TV.
I don't go into a lot of technical detail during this short, instructive process. Most consumers are less interested in signal-to-noise ratios than they are a clearer sound with less background noise,aka, a higher signal-to-noise ratio.
I discuss the dangers of ALDs that place volume control in the hands of the unsuspecting listener. Of course, the users of these ear amplifiers are going to increase volume to a comfortable listening level, a level that may be so loud that it further damages an already weakened hearing mechanism. No need to talk about filters or limiters. Just built-in, digital protection to prevent too much sound from entering the ear. That's an extra cost.
It's also a "must-have" for people with mild to moderate, pervasive hearing loss.
Form and Function
Like any mechanical device, hearing aids have both form and function. Form takes shape in the various types of hearing aids: CICs, RICs, BTEs and combination hybrids. It's here that the good hearing aid professional instructs you on the pros and cons of each type. Yes, CICs do present the lowest profile but some wearers complain of stuffiness since the hearing aid completely blocks the ear canal.
Form and function.
On the other hand, a BTE may be more visible, one reason manufacturers are now producing brightly-colored behind-the-ear devices. It eliminates the stigma associated with blah, beige hearing aids that are anything but invisible.
I also take a few minutes to explain the benefits of open ear hearing delivered by BTEs. These hearing aids employ microphones that rest just outside the ear canal, enabling the ear to hear to capacity with a boost from the hearing aid as needed, producing what many consider a more natural sound.
Form and function, once again.
Features
This is the one place you can save yourself a great deal of money if you're willing to manually control your hearing aids. DIY hearing aids.
Today, 99.9% of all hearing aids employ digital circuitry, smart, thinking circuits similar to those used in computers. These circuits can do everything from automatically lower the volume in various listening environments to warn you that you have a hearing evaluation next Tuesday.
Omni-directional microphones, automated feedback squelch, multiple tuning channels - as a hearing aid dispenser, it's my job to lay out all available features of the hearing aids, and the additional costs associated with the assorted bells and whistles.
You may prefer to spend the extra money for the convenience of wireless connectivity, or for a pair of water-proof hearing aids because you still live a busy, active life and you couldn't do without your cell phone, PDA, wireless laptop and all of the other wireless gadgets in your life. But, you'll pay extra for that feature.
Even economy models come with lots of features standard: feedback suppression is usually standard. And even manually adjusted hearing aids can be set to different listening environments with the discreet flip of a switch. No fumbling required.
However, each feature adds to the price of the hearing aid. Many consumers are happy to make their own adjustments. Some prefer to make their own adjustments. They don't want all that automated, digital circuitry that does everything but start the car on a cold morning.
If cost is the issue (isn't it always the issue), purchase a quality hearing aid with fewer automated features. Learn to make your own on-the-fly adjustments and save a few thousand dollars.
It's always your choice. So take your time when making a hearing aid purchase. Work with the dispensing audiologist or with your local hearing center to find the right fit for your hearing needs and your budget needs.
Finally, remember, a hearing aid isn't a discretionary purchase - some sort of luxury, anymore than eyeglasses are an indulgence. Life is filled with sounds, many of which you're missing.
So visit your local hearing aid retailer, not to buy, but to learn. Become an educated consumer with the help of the hearing aid dispenser to find the right fit for your needs.
You don't have to blow the budget to enjoy vastly improved hearing. And hearing again is something on which you simply can't put a price.
Aug 27, 2010 at 12:59 PM You didn't answer the question, why are they so expensive? That they give us better quality of life is not the issue, it's why we have to pay so much to get that quality of life when the manufacturing cost is so low.
Sep 7, 2010 at 9:53 AM I know why hearing aids are so expensive...GREED! The hearing aids I need would cost me about $9000.00 for a pair. That's for a pair of amplifiers that cost about $100.00 to $200.00 to manufacture, and maybe $300.00 labor for fitting. Clearly, audiologists have not heard about the law of supply and demand. If these people were to offer hearing help at a reasonable price their parking lots would be full of paying customers all day every day and their income would rise astronomically. Oh, well...
Feb 2, 2011 at 4:44 PM Why are hearing aids so expensive?
How much will you pay me to throw you this $5 rope if you are drowning? 3000 bucks is cheap.
Basically, we can get away with it.
Feb 24, 2011 at 7:19 AM You didn't answer you own question, why are they so expensive? This is basically the sales pitch. Many more sophisticated devices than this cost far less. Greed--one commenter's explanation--is the correct explanation.
May 24, 2011 at 10:45 PM I agree with other comments, you didn't answer the question. You're just trying to sell more. The title of this article is misleading and I now also question the validity of this site.
Specifically - what are the reasons hearing aids are so expensive? Is it because they're expensive to make? Because only licensed dealers and audiologists can sell them and they jack up the prices?
The question in the title isn't asking "why should I spend so much money on hearing aids".
May 28, 2011 at 7:43 AM From an outsider's perspective, the hearing aids industry is one of the most over-priced niches in the healthcare space... you can read more about it here:
http://audicus.wordpress.com/2011/05/26/hearing-aid-price-bubble/
Quality hearing aids nowadays are comprised mostly of digital signal processors that in its aggregate cost in the range of $20-$100. Most major manufacturers (e.g. Phonak) mass-produce these devices in low-cost China. Nevertheless, the patient foots a $3000-$7000 bill for a pair of hearing aids, with prices nearly doubling in the last decade. How come modern cellphones that are substantially more complex than hearing aids cost up to 5 times less? Here's my stab at the 3 most important elements:
1. Mark-ups: audiologists mark up a device on the order of 3-5x the wholesale price. They claim that it's due to the heavy service component (more relevant for 1st time users than for replacement customers), which is partly true. The other element is that audiologist clinics in the US are highly fragmented and do not generate enough sales volume to offset the high overhead costs of their clinic... and thus need the price levels.
2. Bundling: audiologists do not provide transparency on the final bill, but often bundle service, device cost, equipment rental, warranty, repairs, etc. into one number. Some users, such as experienced users looking for their next hearing aid, might only require a fraction of these services... however are billed for the full package.
3. Over-engineering: for the majority of users (mild/moderate hearing loss), devices nowadays do not provide substantial improvements in alleviating hearing loss, compared with devices from 2-3 years ago. Instead, manufacturers pack these devices with myriads of features (wireless functions, remote controls, 20+ channels,...) that allow them to pass on price increases.
Quite frankly though, a patient who can't buy a hearing aid because it's grotesquely priced doesn't care about having a bluetooth-enabled device; he/she just wants to hear better. It seems that when it comes to hearing aids, patients are often only offered the "Rolls Royce"... but don't have the choice of opting for the "Honda".
This market is due a shake up, where ultimately more choice and transparency needs to be given to patients.
Aug 12, 2011 at 4:58 AM You might be right about the hearing aids needing to fit your ears, but don't glasses have to be fit to your face to give the proper results and yet they are not thousands of dollars. I am sorry, but I think most people with hearing aids are just being misled. I had a friend that worked in a factory that made them and she said the cost was about $20 to make. That was a few years ago, but the rest is just gravy for the person that fits them to the ear.
Aug 31, 2011 at 9:21 PM Absolutely true....hearing aids are way overpriced. Computers and electronics have gotten very very sophisticated yet have gone done in price. I've held on to my hearing aids for 12 years to not pay these prices...only to find that the hearing aids are even more expensive now!!! What a scam...and they have us over a barrel....crap!!
Sep 27, 2011 at 4:00 AM Great blog. I think, You making some rules,This rule required consumers see a doctor before buying a hearing aid.This rule was the direct result of testimony from "audiologists." These hearing aid providers warned that consumers would otherwise waste money on hearing aids when their hearing loss actually stemmed from a medical condition such as acoustical nerve tumors, infections, and plain old wax buildup.
Jan 19, 2012 at 11:45 PM You stated. "Today, 99.9% of all hearing aids employ digital circuitry, smart, thinking circuits similar to those used in computers."
This statement says it all. Hearing aids cost up to 10 times the amount of a computer that has similiar circuits. The hearing aid industry is ripping us hearing impaired people off. You sidestepped the subject just like any politition would by not giving a valid answer.
Mar 13, 2012 at 1:55 PM This is definately a bogus website. It is nothing more than a sales pitch.
Apr 5, 2012 at 9:18 AM As a first year audiology student, I'm not sure why they cost so much, either. I had a patient who was an engineer, and he was just shaking his head, saying that there's no reason that they should cost so much. I felt like an idiot because my professors have not told me WHY exactly they cost so much, so I have no answer. At my university's clinic, we break down the cost on a sheet that is explained to the patient, and the patient signs it. They pay a fee for their consultation, a fee for the fitting appointment, a fee for us to take an impression of their ear, a fee for the finished custom ear-mold (which we ship out to be made by a different company), and the price of the hearing aid. The price of ONE hearing aid at our clinic without those other fees is still around $1,500. I am told that we are significantly cheaper than private practices, and we are technically a non-profit organization. It's frustrating to me as a student not knowing exactly how much we pay hearing aid companies for the devices, and what other costs are bundled into that $1,500 price tag that the consumers pay-- but my professors don't exactly confide that information to me. Makes me feel like a scumbag, though, when a man who lost his hearing from serving his country 70 years ago gets bamboozled into buying $3,000 worth of hearing aids that he really can't afford. This is why I'm leaning more and more toward research rather than clinical work...
Apr 5, 2012 at 10:53 AM Hi first year AuD. The majority of the cost is the time and of course the overhead of a typical practice not to mention that this is a low volume product. The typical private practice sells about 20 hearing aids a month. Their time is bundled into the cost of a hearing aid. And many do not charge for hearing loss screenings. To my knowledge few charge on a per visit basis.
May 12, 2012 at 11:44 AM Everything cost to much you are all idiots!
May 21, 2012 at 7:50 PM I don't understand why you don't define terms. When I got to CICs, RICs and BTEs, I stopeed reading because I didn't know what you were talking about and you never defined them. Just because you know what the initials mean, does not mean that everyone does.
May 22, 2012 at 12:46 PM Alan, you have a good point. From now on we will define. FYI here are the definitions: CIC - completely in the canal, RIC - receiver in the canal small behind the ear, BTE = behind the ear, ITE = in the ear, ITC = in the canal.
Oct 1, 2012 at 1:48 PM Premium hearing aids are sold to the Veterans Administration for less than $350/aid from leading hearing aid manufacturers around the world. For private practices, Audiologists purchase premium hearing aids either directly from the manufacturers or from buying groups. They generally pay less than $1000 for each aid. Audiologists then mark up the aid and sell them to customers for $3000 or more. For a pair of aids audiologists receive $4000 above the cost of the aids for their services. It takes an average of 4 hours to test, fit, and adjust aids. In that case, audiologists are charging $1000/hour. In a previous response Sergei said that Audiologists have high prices because they sell only 20 aids per month. I think the average is more like 14 aids per month. They need to make a lot of money off each sale. The shortest answer why aids cost so much is “the market bears it.” As long as we pay what they ask, the price will continue to rise. What is needed is competition that sells premium aids and premium service at an equitable price and a market that chooses them.
Oct 4, 2012 at 3:32 PM <opinion>
This is a self perpetuating problem (think chicken and egg). The fact that they cost so much limits the market and in effect keeps the price inflated. There's likely some vanity going on, too. On the other hand I agree that there is a desire to make a profit that exceeds the customary percentage.
</opinion>
Oct 24, 2012 at 11:47 AM Well, I received a coupon in the mail for $1000 off on premium products. I looked up the company and they have aids that start off at $790 per hearing aid. The man showed me 3 hearing aids I could choose from the least expensive was $1500 per hearing aid and the most expensive wqs $4000 per hearing aid. Only the $4000 hearing aids would recieve the $1000 discount. Is this bait and switch? I think so. As a teacher who lives alone I can not afford to buy this product. He told me he would set up a payment plan, but I do not buy what I can not afford.