Purchasing Hearing Aids

Why Are Hearing Aids So Expensive?

The major factors contributing to the real cost of hearing aids are:

• Research and Development costs are often cited as the main contributor to high prices for new technologies. Manufacturers are spending tens of millions of dollars trying to improve their hearing aids.
• Returning a hearing aid for credit within the money-back period is a significant cost factor, due to FDA guidelines in the US that prohibit the resale of those returned hearing aids into the US market by the manufacturer.
• As always, advertising is right up there in contributing to the costs of hearing aids. Manufacturers print brochures, subsidize newspaper advertising for local providers, maintain websites, etc.
• General business overhead and labor cost are also a significant cost. Both the manufacturer and your provider incur these expenses.
• The single largest component in the price you are charged is often the provider mark-up. Your provider has many expenses that must be paid and will often spend many hours with each customer.

What does “50% off Retail” really mean?
First, it is a very good idea to establish a starting figure. In other words, 50% off of what? Usually the markdown is off the Manufacturer’s Suggested Retail Price (MSRP). Manufacturers routinely set the MSRP extremely high to allow providers the opportunity to advertise a discount. The normal actual selling price of most hearing aids in most markets is about 50-60% of MSRP. Most 50% off sales are a good way to get customers in the door without giving up much, if any, of the profit margin. So the short answer is: 50% off usually means “normal everyday price.”

How about trade-ins?
There is virtually no market for used hearing aids, none in custom-made hearing aids. The reason for this is that the provider’s actual cost for a new hearing aid is usually far less than the supposed “trade-in” value he is offering. If your provider is giving you a trade-in, it should be looked at as a discount. Ask him if he will give you the discount and let you keep your old aids as a back-up.

What's the Best Way to Purchase?

Most medical insurance does not cover hearing aid purchases. This leaves you with the responsibility of paying for your new hearing aids out of your own pocket. Your goal should be to help you find the right hearing aid the best provider for your needs at the lowest price with the best service available.

Are there ways to pay for hearing aids that are better than others?
One of the best ways to pay for a hearing aid is to use pre-tax dollars. There are a number of plans out there, usually through your employer. (See bibliography for details).

• Flex Plan spending accounts
• Medical savings plans
• Cafeteria plans

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