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Is There a Hearing Aid Price Bubble?
An anonymous reader writes "The price of a pair of hearing aids in the U.S. ranges from $3,000 to $8,000. To the average American household, this is equivalent to 2-3 months of income! While the price itself seems exorbitant, what is even more grotesque is its continuous pace of growth: in the last decade the price of an average Behind the Ear hearing aid has more than doubled. To the present day, price points are not receding — even though most of its digital components have become increasingly commoditized. Is this a hearing aid price bubble?"
Someone's parents are getting older.
"National Security is the chief cause of national insecurity." - Celine's First Law
This outrageous story will fall on deaf ears
You, sir or madam, are ignorant. Most insurance plans don't cover hearing aids. And try to get one of these digital hearing aids through the gummint. Ain't gonna happen.
No sig? Sigh...
I remember my mom and her husband went on vacation and had some trouble with his hearing aid. Basically, he plugged it in to recharge it and the charger burnt out; it could only handle U.S. voltages. The couple staying in the room next door saw the blackened charger sitting in front of their door and asked what had happened. They found the whole thing very strange. They were European, and their hearing aid charger could adapt to any global voltage, and they had never heard of one that worked otherwise. If I remember right, the woman's own hearing aid was also significantly higher-tech than my mom's husband's. It was not only smaller, but it fit deep into the ear canal (I'm not talking about a cochlear implant, this was a hearing aid). The important thing here is that my parents, living in the U.S., had neither seen nor heard of either technology. Their doctor had given them a couple of choices for a hearing aid and they chose the better one -- which obviously wasn't as good as what you could pick up in Europe. I don't know what they paid for the hearing aid, but it seems to me like something funny is going on.
Breakfast served all day!
Most insurance plans do not cover purchases of hearing aids.
/.'s 10 Millionth
I wear hearing aids in both ears, as a souvenir of my time in the Navy back in '72. If my hearing loss weren't service connected I'd have had to buy my own, and there's no way I could possibly have afforded them. As it is, I got them from the VA (The biggest buyer of hearing aids in the USA.) for free. Hearing aids are overpriced because it's a seller's market and health insurance companies are willing to shell out whatever the manufacturer asks. And, of course, if your insurance doesn't cover them, you're stuck with two unpleasant choices: either you pay full retail price or you do without.
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I'm sure the average American household is well above that.
They may be counting single-occupancy dwellings as "households," but the important part is, probably a great many of the people who require hearing aids are either already on fixed income or are close to retirement.
And if there is a price bubble, the Chinese will be right there to correct it.
TFA claims the ones we're paying $2,000 for are already being manufactured in China for $100. The problem is that a hearing aid is technically a durable medical device. Many people prefer to consult with a professional to get the right model, correct fit, etc., and some states actually forbid hearing aids being sold by mail or by anyone other than a licensed professional. So that kinda puts a damper on the grey market for many people.
Breakfast served all day!
An article on how expensive hearing aids are from a hearing aid company that advertises their low costs.
GENERATION 9882463: The first time you see this, copy it into your sig & add a random number to the generation.
Capitalism at its finest.... people have needs... you have answers.... gouge em till they stop asking! Or gouge their insurance and drive rates up for everyone.
CAPITALISM DOES NOT BELONG IN MEDICINE. SINGLE PAYER, NON PROFIT. DO IT.
No. Healthcare costs are where they are because the CAPITALISM factor is involved.
With Single Payer Non-Profit, you can expect a 40-50% decrease in total cost to insure. Modeling after Canada's cost/person, a reduction from $1.5TR/250M-people to $1TR/300M-people is possible. That means the 250 million that pay for insurance are paying 1.5 TRILLION a year for shoddy, exclusion rich, insurance when the sum of all Americans, 300 million people, would be paying 1 TRILLION to cover everyone without any exclusions or b.s. trickery.
I've talked to over 40 canadians about how they feel about their single-payer system and NOT A SINGLE ONE agreed with the US-paid-pundits that lie about how canadian's don't like their healthcare. Matter of fact, more than 25% of them laughed when I first asked, knowing that I had been exposed to the US-paid-pundits and required truthful answers.
This.
Say what you will about financial motivation, but for-profit healthcare is a morally bankrupt and ultimately self-defeating strategy. I'm fine with the doctors and professionals getting paid, everyone needs a job, but these people should not be greedy middlemen in the sales industry. They're not "adding value", they're double-dipping.
-Billco, Fnarg.com
Actual capitalism is fine in medicine. Fraud, bribery, corrupt regulation, and general unchecked avarice drive up prices. We need fewer medical regulations, and more white collar crimes police units.
Where capitalism has absolutely no place is insurance. Private insurance, yes; for profit insurance, are you @#$% kidding?!?
I won't join Slashcott. OTOH, If Beta goes live, I just won't be back until it's fixed. Sorry Dice.
This is one of the biggest reasons why social security is in trouble.
This is so wrong! You have bought into the shell game and misdirection that so many politicians have been leading. The Social Security trust fund holds over $2.5 trillion. Most of this has been lent to other under funded government projects. That's the problem. We don't want to pay back the the money we borrowed from the Social Security system and instead say the system is broken. It isn't. The systems is fully self funded. We've just been treating the huge Social Security surpluses as a giant piggy bank for so long that we find it easier to say Social Security is broken than pay back the money we stole!
well you pay for the medical professional's advice and consultation outside the already incredible price for the hearing aid, so charging $2000 for a $100 device is really just an incredible abuse of power. This is why for profit medicare sucks.
It may be an abuse of power, but I don't know that it's the doctor who's the abuser. Doctors are probably forced to buy everything through "the approved channels" -- they can't just fly someone to China and come back with a suitcase full of $100 hearing aids, and they're probably not even allowed to distribute literature to patients about shopping for a grey market hearing aid on their own. So if a patient has to go to a U.S. doctor, then the patient has to pay the U.S. price.
It is funny, though. My parents, who are fairly Republican and were vehemently against "Obamacare," are already driving to Mexico to fill their prescriptions, where they cost something like 70 percent less. For some reason, my parents cannot see the doublethink of voting against healthcare reform despite the position they find themselves in. I think it's just the paralysis of fixed income -- you're so desperate to protect what you have right now that you will resist any change -- even though, deep down, you can feel the vice tightening around you.
Breakfast served all day!
You're too dim to understand the difference between non-profit and capitalism.
Non-profit means all of the people involved in the work still get paid. The doctors get paid. The nurses. The hospitals. The people who administer payment from the single payer system even get paid.
What DOESN'T exist is MORE MONEY/COSTS being taken out for people who do not actually do the work. These are the stockholders to insurance companies.
I'm glad you gave me the opportunity to explain this to you so now you understand.
I do stem cell research for a living. I am paid a WAGE not a PROFIT, for my work; and if I were to produce something patentable, I would be able to be well paid based on negotiations between me, the patent owner, and the firms that purchase the product. Compensation and Wage are NOT profit.
So why is it that single payer non-profit health insurance is 40% LOWER in cost than *ANY* for profit insurer out there?
You've expressed that it will win, but you've got NO FACTS to show. In the US, insurance is largely FOR PROFIT. Please demonstrate one company where they charge LESS than can be achieved by single-payer..... I'll wait... Matter of fact I"ll check for your response in a week because I know you won't find ANYTHING. If what you said was true, people would be using that insurer like crazy!
Get out of your utopian head and back to reality. Capitalism in medicine is criminal.
I have a bill here from LabCorp. Price before insurance: $327.60 (for some routine bloodwork.) Price after insurance "adjustments": $14.88. So it's not just that they overcharge, it's that they deliberately overcharge the uninsured who have no idea what anything should cost.
"He who would learn astronomy, and other recondite arts, let him go elsewhere. " -- John Calvin, commenting on Genesis 1
In big cities it's not uncommon to wait 4-6 hours for an emergency consult, unless you roll in on an ambulance with a severed limb...
We have that in the US too. My medium sized city has a few of the best hospitals in country. Unless you're bleeding severely, giving birth, or having a heart attack you can count on a multi-hour wait at the emergency room. The only different thing from Canada is that patients get to walk out with fat bill. Something minor runs hundreds. Something major costs thousands.
"Liechtenstein is the world's largest producer of sausage casings, potassium storage units, and false teeth."
Medical regulations aren't causing the expense of your hearing aids. I don't know where the blame lies, but that almost certainly isn't it. The reason capitalism isn't necessarily fine with medicine is the number of suppliers is often so limited, there is no real competition.
Government regulations are the primary reason why the number of suppliers is so limited. The regulations governing the manufacture and sale of medical devices are subject to interpretation and the FDA will not necessarily give you the definitive word on what the correct interpretation is.
The truth is that all men having power ought to be mistrusted. James Madison
Hearing aids are regulated by the FDA which is why it costs $5k or so in paperwork.
Here is capitalism. It looks like a hearing aid but it is really a sound amplifier so it is not regulated by the FDA. It costs $70.
http://www.amazon.com/Voxom-Hearing-Aid-Sound-Amplifier/dp/B005AM7S3K/ref=sr_1_9?ie=UTF8&qid=1315622221&sr=8-9
I love Jesus, except for his foreign policy.
I used to work for a hearing aid company in IT.
The most expensive programmable digital hearing aid with all the options topped out at around $1200. That's the cost to the hearing care professional. So yeah, that hearing aid would turn around and sell for at least 3 to 4 times that.
Also, the company had an extended warranty that we sold to the hearing care professional. Most of them don't turn around and sell that to the customer. Instead, they pay for it themselves and then when a customer brings a hearing aid back they sent it to us for free to fix and they charged the customer for it. It seemed like quite a nice racket. Especially when you consider they also charge for the hearing checkup, fitting, and all of that other usual crap above and beyond what the hearing aid itself cost.
I'm not sure what the rest of the medical device industry looks like, but it wouldn't surprise me if it was fairly similar. I know the markup on my glasses frames is pretty crazy.
Simply put, but this is the actual answer to the question posed in the summary. The cost of health service and supplies are greatly inflated in the states compared to most of the modern world. I don't mean in the sense of "oh, in other countries it's paid for by taxes" sense or the "yeah but it is inferior quality care" sense but the actual amount that the provider gets paid for exactly the same supplies or service, regardless of who is paying it in the end. As an outsider looking in at America i really do not understand how the health provider industry in the states managed to pull it off.
Americans are getting ripped off on health care hard, to the tune of 2 to 10 times the prices paid out to suppliers or service providers in other countries. I think given the amount of discussion on HOW or WHO will be paying for health care in past years, some groups had to be lobbying very hard to keep the topic of "Why is it so damned expensive here to begin with" out of the limelight.
And they succeeded.
Ice Cream has no bones.
isn't wanting something cheaper just as greedy as wanting something more expensive?
If I demand a $5 hearing aid how is that less greedy than charging $5k? Value is set by the individuals on both sides of a transaction.
Paying taxes to buy civilization is like paying a hooker to buy love.
When she got it, we were fairly well off - just sold a company and to be frank, I didn't notice how much it cost.
recent problems with it put me on the front lines - and getting a bill for $800 just to fix is gave me a lot of angst. I have to say I railed at the person on the front counter quite a bit considering I know a lot about analog, digital, integrated circuits, and such - and basically told her that IMHO the components she was quoting as retail in the $3000 range were worth about $10 or less.
Then she loaned us an "over the ear" unit while the in-the-ear one was out for repair - and when I went to give it back, said "keep it" - so confirming that the actual hardware cost is trivial (unit is about 3 times the size of the current one but otherwise similar capabilities - and given the progress in IC units, represents maybe 3 years' progress)
So... when I heard an ad on the radio last week for an in-ear hearing aid for $500, I figured "about time" and so the poster is correct - there is a revolution coming.
Question is - what patents will be held over the heads of those trying to break this cartel - because it truly must be a cartel.
Note that I can now (despite the eye-glass cartel of yesteryear) purchase more than useful eye-glasses in various basic diopters at the local dollar store - to the point where I have enough around the house that I have achieve "maxiumum vapour pressure" of eye-glasses (i.e. there is a pair at hand any time/where I need them)
richard
Been there, done that, paid for the T-shirt
and didn't get it
A regulation-free medical industry is one where you get loads of useless homoeopathic and similar remedies, and there is no guarantee that they will work as described or be safe.
All of these posts about how your countries give hearing aids to elderly and poor is just rude. If the U.S. was a AAA country we would do it too. Showing off your wealth is lame.
Having to work for a living is the root of all evil.