Paper
Study finds payment method may limit dispenser's fitting options
Published Mar 1, 2006 · DOI · A. Amlani
The Hearing Journal
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Abstract
Based on the advances in technology during the past two decades, one might presume that the hearing aid market has experienced considerable growth. Unfortunately, this is not the case. Review of market data shows that the hearing aid penetration rate remained essentially constant from 1980 to 2001. The Hearing Industries Association (HIA) estimated that 1 of every 5.7 people in the United States with hearing loss (17.5%) owned hearing aids in 1980,1 while data for 2001 showed that 1 of every 4.5 hearing-impaired people (22.2%) owned hearing aids in that year.2 Thus, over this 20-year span, market penetration increased by only 4.7%. Or, stated differently, penetration increased at a mean rate of 0.2% per year. Some dispensers and others in the industry have speculated that the low market penetration results from, in part, the price of the devices, a factor that may deter people from purchasing them. However, retrospective analyses of data have documented that lowering prices of hearing aids fails to yield marked increases in the number of devices sold1,3,4 and, likewise, that increasing prices does not decrease unit sales appreciably.5 Aaron showed that full governmental subsidization of hearing aids would increase market penetration by 35%.3 A 35% boost in the present market penetration of 22.2% equates to a 7.8% (22.2% x 0.35) increase in the number of people who own hearing aids, for a penetration value of 30%. That is, the number of people who owned hearing aids would increase from an estimated 6.3 million6 to 8.2 million. The typical new hearing aid user is 65 to 70 years of age and has a yearly household income between $35,000 and $55,000.6,7 To obtain devices, many consumers rely on third-party payers, such as Medicaid and insurance companies, for partial or full financial assistance.8 As for the people who sell hearing aids, approximately one-third of the audiologists (30%) and nearly half the hearing instrument specialists (45%) serve as providers to managed-care organizations (MCOs) and health-management organizations (HMOs). MCOs and HMOs account for 24% of the consumer base and—for the past 5 years—18% of the gross revenues of audiologists and hearing aid specialists who sell hearing aids.9
The study found that payment methods may limit dispenser's fitting options, potentially impacting market growth.
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