Two years ago I wrote about the U.S. Food and Drug Administration giving a green light to over-the-counter (OTC) hearing aids. Millions of people with mild hearing loss would be able to buy an OTC product without the expense of seeing an audiologist and spending thousands of dollars. It made a lot of sense at the time.
It has been nearly two years since a Food and Drug Administration ruling allowed retailers to sell hearing aids without a clinical assessment. Doctors lauded the move as a solution for over 20 million American adults who have hearing loss that isn’t severe enough to warrant expensive prescription devices. Regular hearing aids can set people back $3,500 or more, while OTC models were expected to cost as little as $200.
However, the Wall Street Journal reports that, at least so far, OTC hearing aids have been a bust. Only about 2% of people with mild hearing loss have purchased an OTC hearing aid. The problem is many of the OTC hearing aids were not much cheaper than prescription models. Some cost $1,500 to $2,000 a pair. Costco used to sell prescription ones for something like $1,650. Although there are cheaper OTC hearing aids they don’t work very well. Retailers report that OTC models have a high return rate. However, the most expensive OTC hearing aids have a lower return rate than the cheaper ones.
Exact figures vary from one manufacturer to the next. Industry sources claim that only about 6% to 10% of prescription hearing aids are returned. By contrast, the return rate for OTC hearing aids ranges from 15% at the low end to 30%, while one retailer WSJ talked to reported a 40% return rate. A major problem is lack of customer service. Hearing aids need adjustments to meet the unique needs of each individual customer. About 60% of those who return OTC hearing aids opt for a prescription model instead.
Basically, the OTC hearing aids that are currently offered are not that cheap and the cheapest ones do not work well. That will hopefully change over time. Apple is adding an update it its AirPod Pro 2 to make them function like hearing aids, but experts do not expect AirPods to replace hearing aids. The battery life is too short (6 hours) and people with white AirPods dangling from their ears do not invite conversations. Imagine going to a meeting with your boss and your boss’ boss with white AirPods dangling from your ears. I do not think AirPods are going to create a good impression.
It’s too soon to dismiss OTC hearing aids as a nonstarter. There is still considerable stigma at wearing something that may make others perceive you’re old. As more people begin to notice hearing loss and use an OTC hearing aid, others will follow. Also, the youngest Baby Boomers are 60. They will be a huge market as they age. In addition, quality will get better over time. Product customer service should also improve. As more companies produce OTC hearing aids, some will begin to create apps to adjust the frequency and sounds without a costly audiologist visit. One big boost will be when prices begin to fall more people will try them. I’m reminded when the fist AirPods came out years ago, they were an expensive status symbol. Today I have cheap knockoffs laying around my house that work well for $10, sometimes less. Within a few years I suspect you will see a lot more OTC hearing aids, or maybe prescription models will fall in price due to competition. Either is a winner for consumers.