By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Can You Hear Me Now? Another Health Market that Really Works
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Can You Hear Me Now? Another Health Market that Really Works
BusinessFinanceMedical DevicesPolicy & LawPublic HealthTechnology

Can You Hear Me Now? Another Health Market that Really Works

John Graham
John Graham
Share
4 Min Read
hearing aid market
SHARE

hearing aid marketHearing aids have been expensive — until now.

hearing aid marketHearing aids have been expensive — until now.

An interesting story in The New York Times a little over a year ago relayed the journey of a woman who had broken the shell of one of her hearing aids. Shocked at the price of hearing aids from private audiologists — at least $2,000 for a set, and usually $3,000, she sought another solution. Learning that about 70 percent of this price is retail mark up,  the woman searched online and found hearing aids available at reputable online stores — such as Audicis or Costco — for as little as $399. Searching a little more, she found an audiologist who offered to repair the shell of her old hearing aid for $100. So, that’s the choice she made.

But it gets even better. Only one year later, new technology has allowed entrepreneurs to develop hearing aids that they plan to sell for $300, and that have better sound quality than ever, according to neutral reporters.

More Read

Children’s Mental Health Week (May 1-7)
No Savings from Raising Medicare Age
Medicaid: Not Just for the Poor Anymore
Medicare Rates Set to Soar
How PPACA fixes some of the problems of Part D

But wait — there’s more!

This good news comes in a fascinating article by a venture capitalist published at VentureBeat just last month. The author, who invests in health technology ventures, sketches out the economics of the hearing-aid industry. It has been high margin and low volume. Traditionally, the manufacturer would sell a pair of hearing aids to an audiologist for $1,000, earning a gross margin of 43 percent. At a retail price of $3,000, after buying the device and incurring sales and other costs, the audiologist’s gross margin has been 55 percent. On the other hand, the average audiologist only sells 16 pairs a month.

But that is all changing. Not only are online vendors and innovating hearing-aid manufacturers cutting costs and improving quality and service times, but digital developers are offering online hearing apps via iTunes and other virtual stores for as little as $3.99. (Yes: There is a decimal after that 3.)

It has taken a long time, but the price of hearing aids is in the process of falling dramatically. How has this happened? Technological innovation, of course, but there is more. There’s no shortage of technological innovation in U.S. health care. However, because third-party payers, that is, health insurers and governments, determine prices, there is no mechanism for customers to signal value to providers.

This is not the case for hearing aids: Although some states have mandated insurance coverage for hearing aids, this is usually limited to disabled children. The big market for hearing aids is seniors, and Medicare does not cover hearing aids.

This is another case of a phenomenon observed elsewhere by NCPA Senior Fellow Devon Herrick: Where patients pay directly for medical care, prices fall like they do in every other market.

Seniors who want highly personalized service from an audiologist in his own practice can get it, and they will pay for it. Those who want to order online can save money by doing that. Those who want to get their old hearing aids repaired can make that choice. And the most adventurous seniors, who don’t mind running an earpiece into an iPhone, can get a functional hearing aid almost for free.

We are on the verge of enjoying universal access to hearing aids — but only because the government restrained itself from interfering and let the market operate.

(hearing aids / shutterstock)

TAGGED:hearing aids
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

dental care
Importance of Good Dental Care for Health and Confidence
Dental health Specialties
October 2, 2025
AI in Healthcare
AI in Healthcare: Technology is Transforming the Global Landscape
Global Healthcare Policy & Law Technology
October 1, 2025
Choosing the Right Swimwear for Health and Safety
News
September 30, 2025
sports concussions
Concussion In Sports: How Common They Are And What You Need To Know
Infographics
September 28, 2025

You Might also Like

health myths
Home HealthPublic HealthWellness

The Old Wives Club: Which Health Myths Are True?

May 29, 2014
predictive modeling in healthcare
Health ReformHospital AdministrationMedical RecordsPolicy & Law

How Predictive Modeling Can Save Healthcare

July 27, 2013
biopharma beat
BusinessDiagnosticsMedical EducationMedical EthicsMedical InnovationsPolicy & LawPublic Health

BioPharma Beat: Is Commercial Support of CME A Bad Idea?

November 24, 2014

Massachusetts UnionsTake a Wise Turn on Health Care

May 26, 2011
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?