Industry

HearUSA Scores Hearing-Aid Distribution Deal With AARP

HearUSA, the U.S. chain of hearing-aid retail outlets, scored a major distribution deal with AARP Services, Inc. to offer discounted hearing aids and extended warranties to the nearly 40 million U.S. members of the world’s largest service organization for adults aged 50 and older. Next to an endorsement by Oprah, a distribution deal with AARP is one of the most coveted marketing prizes for companies selling to middle-aged-and-older consumers. AARP has long offered advice on hearing health but has been short on commercial offers for hearing aids to match the discounts it provides for vision products and general health insurance plans. The HearUSA deal should provide similar incentives for seniors to take care of their hearing needs, although the initial press release held back on details of the discounts and other offers that will initially be offered to customers in New Jersey and Florida and later throughout the United States.

The arrangement is good news for Siemens, which is a major investor in HearUSA and supplies most of the hearing-aid products sold by the company. In addition to providing a financial boost to HearUSA, the AARP deal may enable geographic expansion of its retail chain, which currently sells hearing aids through 180 company-owned hearing care centers in 10 states in the U.S. and its Hearing Care Network comprised of over 1,900 affiliated audiologists in 49 states.

HearUSA this week also announced second-quarter net income of $1.1 million, compared to a half-million-dollar loss in the previous quarter. Like other companies in the hearing-aid industry, HearUSA has seen a falloff in sales due to the recession, but cost-control measures in addition to the sale of its Canadian subsidiary boosted both the bottom line and balance sheet in the second quarter of 2009.

Opinion: Hearing Aid Pricing Should be More Transparent

The recent Consumer Reports survey of hearing-aid pricing and fitting practices highlighted a growing problem for the hearing-aid industry. Increasingly, consumers are starting to wonder why a few small digital components that can be purchased individually from wholesalers for tens of dollars each (digital signal processor, microphone, amplifier and software) end up in a set of hearing aids that can cost thousands of dollars. It’s time for more transparent pricing in the hearing-aid industry. Digital technologies are becoming standardized, and the cost of components continues to decline.

And there are good alternatives to the established brands now for cost-conscious, tech-savvy do-it-yourselfers: America Hears, which builds top-quality digital hearing aids and sells them online, programs them to your audiogram at the factory, sends you the software to make your own adjustments, and has licensed audiologists at the end of the phone to give you as much help as you need. All for under $1,000 a hearing aid. But most other comparable top-quality digital hearing aids still cost two to three times that much. Why? The answer is in the cost of the service required to get a custom fit. If you don’t dare do it yourself, a good audiologist truly is worth his or her weight in gold, especially if your hearing profile is complex. Getting a comfortable fit and programming assistance tuned to your audiogram usually requires multiple tries and is seemingly as much art as science. An audiologist who will stick with you through multiple adjustments is worth a significant mark-up. But it’s fair to question the value of the markup above and beyond the wholesale price of the basic hearing instrument components.

The hearing industry for the most part remains stuck in a very old distribution model which has restricted growth and shut off affordable options for a large segment of potential buyers in need of hearing assistance. Today most hearing aids are sold by audiologists who charge a single price for the hearing instrument and the service they provide. They give you a hearing test and fit you with hearing aids that meet your specific needs. Their invoice most often does not include line items for the cost of the hearing test, for the ear molds, for the hearing instrument, or for follow-up service. If it did, you would see there’s a lot of cost built into the time they put into helping you out. If you don’t need much help, they make a lot of money. If you are a difficult case requiring a lot of adjustments, they make less. This model worked well until recently. But now, digital technologies are making many more options available for people with different kinds of hearing loss. Open-fit designs mean many consumers don’t need an earmold fitting, and good digital amplification is making it possible for many people to get the hearing assistance they need from low-cost manufacturers selling direct, over the counter. One manufacturer, Songbird Hearing, is even offering disposable hearing aids that you can buy direct from their web site to address mild hearing loss, without a hearing test if you sign a medical waiver. Read more

You Can Trade In Old Hearing Aids For $200 Back From America Hears

If you don’t want to grind up your old unused hearing aids in a blender as seen in the funny Blendtec video, and if you have already made your charitable donations for the year and don’t feel you need to donate them for recycling, there is another way to get them out of your drawer: you can trade in two of your old aids for $200 off the price of a pair of new digital hearing aids from America Hears. Read more

Yes, You Can Buy Premium-Quality Digital Hearing Aids Over The Internet

I recently got a new pair of hearing aids, and I’m as excited as if I’d just bought a new sports car. One of the reasons I’m so happy is that I was able to take ownership of the process for the first time by getting them from America Hears, Inc., which sells and supports hearing-aid consumers directly over the internet. Read more

FDA Warns Viagra, Cialis and Levitra May Cause Sudden Hearing Loss

The U.S. Food and Drug Administration has ordered makers of the erectile dysfunction drugs Viagra, Cialis and Levitra to post prominent warnings on their labels of the possilbity they may cause sudden hearing loss. The FDA said it has received 29 reports of sudden hearing loss, both with and without accompanying ringing in the ears, vertigo, or dizziness following usage of the drugs. Most cases involved one ear, with either a partial or complete loss of usual hearing. Read more

Vaccination Can Lessen Meningitis Risk For Cochlear Implant Patients

The U.S. Food and Drug Administration has issued a new warning that cochlear implant patients make sure they get vaccinated against bacterial meningitis, a potentially deadly infection causing inflammation of the meninges, or lining of the brain. Read more

Gennum Abandons Hearing-Aid Market With DSP Chip and Headset Spinoffs

Gennum Corp. of Canada, long one of the leading suppliers of digital signal processing (DSP) chips and other technologies to the hearing-aid and headset industries, is abandoning the hearing-aid market with the spinout of its hearing instrument design and manufacturing operations to a private equity group and the sale of its consumer Bluetooth headset business to a consumer electronics company based in Sweden. Read more

Note To Steve Jobs: Why Isn’t The Apple iPhone Hearing-Aid Compatible?

I can’t believe Apple failed to make its iPhone compatible with either hearing aids or cochlear implants. I’m in the market for a mobile phone again and just discovered the lack of compatibility. Given all the hype surrounding the iPhone launch, I’m surprised there haven’t been more complaints. Read more

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