As an older gentleman, I am subject to something generally known as “high end” hearing loss. Basically, that mean that I don’t hear high frequency sound as well as I did twenty years ago.
It took me a while to admit I had a problem. When I finally underwent a hearing exam, I conducted my own A/B tests. I brought a music recording with me. I listened with and without hearing aids. When my testing was over, I bought a pair of hearing aids.
The Costco Connection
I had gone to Costco. The reason: Costco was reputed to have reasonably priced hearing aids. Reasonably priced? That meant between $1,000 and $2,000 for a pair of “instruments” as the folks in the trade like to call the little earpieces.
And that was, and still is, I assume, reasonable. I know that because I also went to a hearing aid specialist—one of those little stand-alone businesses that dispense hearing aids. The prices there were more than $2,000 per hearing aid. It would have cost more than $4,000 for a pair. “Yikes,” I said, and joined Costco.
I’m thinking about all this now because I recently lost a pair of hearing aids. Somewhere at home, I don’t know where. We looked everywhere and no luck.
But—I have a relative who had in his possession an extra pair of hearing aids. They were new, high-end (as in expensive), not needed, and offered to me at no charge. All I had to do was get them fitted, and problem solved.
Not so fast.
Reusing Hearing Aids—Expensive or Not Allowed
The “fitting” of a hearing aid is a computer-controlled process. Sit in a little relatively soundproof booth and press a button when you hear a sound. First one ear then the other. It’s all automated. At the end of the process, the computer downloads the settings it has identified to the hearing aids. This is all accomplished via Bluetooth connection. It’s quite nifty.
The tricky bit is finding someone who will program, or in my case, reprogram the hearing aids. When I had the new (used) hearing aids in hand, I started calling hearing aid suppliers that carried the brand and asked about programming.
“How much!” was my reaction. Hearing aid shop no. 1 said it would be about $1,500 and it might not work. That was the cost of a new set of hearing aids at Costco.
Supplier No. 2 said they would be happy to do it. It would be $800 per hearing aid, and that would include a two-year service plan. I did the math: $1,600.
So I bought a new set of ears at Costco. And while I was there, I asked the technician about what would happen if I got a new (used) set of hearing aids just like my old ones. (I saw I could get a pair on Ebay.) Would they program them for me?
Here I was, spending a lot of money. And I was a customer – this was my third pair of Costco hearing aids. And I was a nice person, so they would be able to help me out, right?
Nope. We can’t do that.
They were Costco brand hearing aids. They had everything needed to program them a couple of years ago. Why not now?
The Pursuit of Profit
Hearing aids are are a valuable tool for maintaining people’s health—at least their mental health. And yet they are woefully underused.
Here is an excerpt from some National Institutes for Health statistics about hearing loss.
Among adults ages 70 and older with hearing loss who could benefit from hearing aids, fewer than 1 in 3 (30%) has ever used them. Even fewer adults ages 20-69 (approximately 16%) who could benefit from wearing hearing aids have ever used them.
Here’s a link to the page of statistics.
Here’s what the FDA says in a “What You Should Know” article on its website.
Close to 30 million adults living in the U.S. have some degree of hearing loss. Despite the high number of people affected by hearing loss, only about one-fifth of those who could benefit from a hearing aid seek intervention. Using hearing aids may reduce the frequency or severity of cognitive decline, depression, and other health problems in adults. Added benefits can include improved social participation and a better quality of life.
Call me cynical, but it’s all about profit. Hearing aids are extraordinarily useful. However, the hearing aid industry has conspired to keep prices and profits high. It’s a kind of price-fixing scheme.
Costco broke away from the herd, undoubtedly creating a lot of ill-will in the industry, with steep discounts. But not too steep. Costco is in business, too. They run a tight, profitable ship.
How Much Markup?
Imagine all the technology that goes into a modern mobile phone. Audio, camera, wifi, Bluetooth, gigibytes of data. A hearing aid, in comparison, is nothing—a kind of a toy in comparison. Microphone, speaker, and wireless connection. If all the parts that go into a good quality-quality, mass-produced mobile phone cost between $200 and $400, the parts for a hearing aid can’t run more than $20 to $40.
And yet, I’m paying $1600. And it’s a bargain.
The U.S. Food & Drug Administration (FDA) established the rule that made hearing aids be made available over the counter (OTC) in 2022. While writing this piece I looked over some of the product reviews and recommendations for available OTC hearing aids. It surprised me that the same brand that I bought at Costco, Jabra, has pretty much the same hearing aids available over the counter—and at about the same price levels. The other hearing aids I saw reviewed were less expensive and less capable. (One of the nicest features of modern hearing aids, for example, is having the ability to stream phone calls or other media (like audiobooks) through the hearing aids. Jabra offers this in its OTC models. Other manufacturers do not.)
Still, it’s clear that new, less expensive options are becoming available. The cartel is still barring the doors as best it can, but it is weakening a little bit. The next time I need hearing aids, I’m going to look seriously into the OTC option—just to see how it is being done. I can imagine a fully-automated, online support program that can do everything necessary.
Next time, I hope to be wiser and more skeptical (and not without any extra ears at all) and maybe I can push back against the cartel.
Anon.
Ridge
Really enjoying your writing. Especially love the variety of topics. Always something new to contemplate. Thank you!
I am in the Bahamas now and the mockingbird outside my window is singing wildly. “This is my space! I am here and will be a wonderful mate!”