Why Hearing Aids Are So Expensive And How That's Changing

An estimated 37 to 48 million Americans have some form of hearing difficulty. Despite that only 14% of people with hearing loss use a hearing aid. But an FDA ruling in the fall of 2022 allowing for the sale of over-the-counter hearing aids could improve access for millions.

The new devices for adults with mild to moderate hearing loss cost as little as $199 and are sold at retailers like Best Buy, CVS and Walmart. Starkey, which got its start in 1967 and has produced tens of millions of hearing aids, said it has plans for an over-the-counter offering too.

So why are hearing aids so costly and what impact will over-the-counter devices have on people with impaired hearing?

To better understand how the devices are made CNBC got a behind the scenes look inside one of the world’s largest hearing aid manufacturers.

Watch the video to learn more.

Chapters:
0:00-2:07 Introduction
2:08-5:14 Hearing Loss
5:15-7:45 The cost of hearing aids
7:46-10:24 New technologies
10:25-13:09 Over-the-counter hearing aids

About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Connect with CNBC News Online

#CNBC

Why Hearing Aids Are So Expensive And How That's Changing

[joepardue]

This is an advertisement for Starkey hearing aids - it is not an investigation into the less expensive hearing aids. You can get by a lot cheaper if you just do some background research. CNBC should investigate this report to see if some money got moved under the table.

[nicki]

In Denmark, we get treatment and hearing aids for free. You also get free batteries for you hearing aids for life.

[leerothman]

It is absolutely unforgivable hearing aids are not covered with Medicare. I had to shell out $3000 for ONE competent hearin aid. Pretty crazy

[jeffleonard]

It’s not about just boosting audio gain or volume when it comes to hearing aids. It’s also about getting the frequency correct.
It’s why so often those with hearing loss including myself say “it’s not that I can’t hear you but can’t understand you”

[b.dalemagee]

So much for CNBC’s objectivity. This is an infomercial for Starkey, no more

[devster]

Most hearing aids are over the ear type and the prices on those are unjustifiably outrageous. I have been wearing hearing aids for over 10 years and the price on the first couple of sets was horrendous. I was going to an ear, nose, and throat specialist clinic and seeing an audiologist there. My current hearing aids were purchased at Costco and the price was much better and the equipment they used for testing was much newer and superior to the equipment used at the ear, nose, and throat clinic. Hearing aids have been a racket for years. Just one part of our terrible health care system. Only in the last few years have I started to see improvement and I believe the coming of OTC hearing aids and the ability to purchase hearing aids online has forced most of the change.

[kimmer]

Hete's a tip for tinnitus My ears rang like hell since I was in a car crash in November 1997. Not much helped in 25 years of enduring this. A friend said that his over the ear hearing aids reduced the tinnitus for him. I spent $5000 on German over the ear hearing aids 8 months ago. It was worth every penny. The ringing is still there but I can now go for hours and ''forget'' about the sound. The audiologist said that the units fool the brain and negate much of the internal signal to the brain causing the ringing. These units improved my quality of life. They have Bluetooth and I really enjoy talking on my phone and hearing it in both ears. People think I'm talking to myself. I hope these kinds of hearing aids come down in price so everyone who needs them can get relief.

[benqurayza]

Good report. I have severe hearing loss from birth. I listened to this video with two hearing aids via Bluetooth and use of YouTube's closed captioning feature. They cost $7, 000. No simultaneous translation available yet! Fortunately, these devices have improved a lot in the past 60 years. I still have some trouble discerning speech in crowded noisy places.

[MrBanzoid]

Hearing aids changed my life. I didn't notice my hearing getting worse until I couldn't understand what people were saying. I could hear them but couldn't make out the words. When I got my aids and wore them for the first time I couldn't believe what I had been missing. I could hear music properly and and birds singing. I could follow conversations and join in.
I live in the UK so they were supplied free by the NHS, even new batteries, although I just buy them I'm bulk myself as they are so cheap.

[fully_retractable]

Should cover why the price of prescription eye glasses is so high, especially when a typical set of frames costs $7.

[CANNIMAGINE]

The greed of these hearing aid companies is unbelievable. With today's technology does anybody really believe hearing aids need to cost $4 to $8 thousand dollars?

[coolbluelights]

I lost 65% of my hearing due to infections as a teenager, so at 25 I got my first hearing aid. They didn't even offer a payment plan and they're not covered by insurance, but the audiologist I went to was nice enough to let me do payments "even though we're not supposed to do this" because I literally did not have the money to pay it in full.

[bradingrao]

How much did Starkey pay for this commercial?

[NightOwlPal]

Just spent $6900 on a pair on behind the ear hearing aids from Phonak. Honestly don't know how or why they can demand such prices but yet i paid it and I'll be looking for overtime to get it off my credit card as fast as possible.

[rayjones]

Here in the UK I’ve been quoted £4000 ($5700 US) for my first pair of hearing aids. For that I can buy 4 high spec iPads packed with the latest technology, cameras, microphones and brilliant software. So what technology is really in these hearing devices to merit such a high price?

[truthalonetriumphs]

I can hear the industry fighting to keep the high prices. They have got the talking points together. Hearing aids need to be like reading glasses, simple and easy to use. Most people need some amplification with fine control. That's it.

[VGAstudent]

The teacher opened up an unexpected side effect of Covid-19, many people with gradual hearing loss learn how to read lips, and as a consequence of masking, suddenly they couldn't "hear" anymore, but what was the real problem was that they couldn't read lips, so the masking situation can reveal hearing loss that might otherwise be ignored even by the victim until it becomes obvious like it did with mandatory masking regulations in all buildings during the pandemic.

[KipBurbank]

I appreciate that Starkey is there for these folks. They let me down after spending $6, 000. For 2 TIC (totally in the canal). Then they broke, after warrantee, 2 yrs. I have had three, $400 repairs in 3 years. Compared to my Oticon, the Starkey are just not as good. Now, I have to bring it in tomorrow, broke again.

[jakkeni]

Im not buying half of what that CEO says. Him and five other other companies had a strangle hold on the industry and thats how they're able to keep prices higher then needed to be. Its no different then any industry thats takes advantage of the people who cant afford it, but need it just as much as someone who has the ability to pay for it.

[AntonioIndelicato]

Hearing professionals make life more complicated for those who have hearing loss. I have a lot of experience with them. Many are greedy for money. I said all! Over the counter hearing aids hopefully will help us to be free of hearing professionals who make false promises to those who are in real need!!