The Hearing Aid Hustle

Who’s Really Profiting Off Our Elders?

Now that I’m in my 70s, I can’t go online without being bombarded by ads aimed squarely at people my age — hearing aids, walk-in bathtubs, prostate pills, flu and shingles vaccines. Oh, and anti-ageing courses run by gurus, many of them half my age. It’s relentless. We’re treated as a captive market — presumed to be declining in body and mind, fearful of the future, and willing to throw money at anything that promises safety, comfort, or timeless youthfulness.

Oddly, there’s one thing I haven’t seen lately: no COVID booster ads. Ones directed at me. Make of that what you will.

One of the most aggressively marketed products right now? Hearing aids.

You’d think hearing loss was a national emergency — and these companies were heroic saviours.

Let me be absolutely clear: this article is not denying that many people genuinely need hearing aids. For those with moderate to severe hearing loss, the right device can be life-changing — improving communication, safety, and overall quality of life. I fully support access to hearing aids for those who need them. What I’m challenging here is not the use, but the business model — the inflated pricing, the profiteering, and the lack of transparency. People deserve the best quality product and service, delivered with honesty and care, and at a price that’s fair and sustainable — not something that breaks the bank or depends on subsidies to appear affordable. Everyone wins when the system is clean, honest, and open to innovation.

The reality?

This is big business, and our elders — often trusting, vulnerable, and living off fixed incomes or savings — are the ideal market.

Let’s dig into the numbers behind the hearing aid industry. The truth might shock you.

From Silence to Clarity - One Woman’s Hearing Aid Story

Here is what one of my long-time clients, a lovely health-conscious woman in her mid-80's wrote for me:

I have been wearing hearing aids since at least 2010. My first ones I inadvertently took swimming in the India Ocean In 2013. Although they still worked, I was advised to replace them when I got back. Had no trouble claiming insurance. I went to Bay Audiology at that point but changed to Triton for my last set of hearing aids because they don’t charge fees and they give ongoing support for the life of your hearing aids.

The replacement ones purchased in June 2019 started deteriorating last Christmas when I was on holiday. I had them plugged into a faulty double power point, with a lamp in one socket working, I didn’t realise because I had battery back up in my charger box.  They had chargeable batteries. By the time I realised something was not right, one of my aids would no longer take the charge. I only assume that this was the problem. Of course everyone was closed when I got back. When I finally got to Triton, I discovered I was not eligible for the Government discount on new ones till 22nd June 2025. They checked if they were able to be fixed in the meantime and at a cost of $110.00, (I understand half price) they were running again.

I received my new hearing aids on 1^st September 2025; the new technology in these, after six years is amazing. The ones I chose are Phonak (same make) Audeo-170R and, on advice, a solid earmold rather than a rubber one. Which are an extra $100.00 each. If they don’t suit you can change them during the 60-day trial period and get that money back. When I got home, I couldn’t believe how loud everything was. I thought all my machines ran silently, the heat pump was so annoying, my fridge murmured, and I could hear peoples’ voices clearly from a distance and my phone calls are beautifully clear. The TV works at a much lower sound level and I never realised that my induction stove top made a noise when in use.

I didn’t realise how deaf I had become. Like my previous ones, they not only connect to a phone, but you can also change all their settings from your phone. I quickly discovered that my six-year-old cell phone was not totally compatible so I needed to upgrade to get the benefit from these hearing aids, you definitely need to be tech savvy but, Triton will give you every assistance if necessary.

The last time I changed hearing aids I trialled a pair that had no pieces behind your ears, just an earmold but after three days I took them back, they kept falling out and the final time, I couldn’t find one anywhere. Was up all night looking. When I went to rinse my teeth the next morning, I found the culprit in my water mug drowning in water. That was the final straw. They happily replaced them, no questions asked. I guess they are insured for returns, I did ask were they able to be used for someone else and was told no because they were specifically moulded for me. They may be great for some, but I think my ear channels just didn’t suit them. I notice that type is now very expensive. I do notice on my new contract that insurance responsibility is mine over the sixty days trial.

The Total cost was $7,212.22 but with the government subsidy as below plus a $500.00 discount for returning to Triton I paid $5,490.00. There is a 60 day no obligation trial period, I have a follow up appointment at no cost on Wednesday. There are much cheaper ones and much dearer ones. I would think you get what you pay for.

I just copied the following off the government website.

Citizens and permanent residents in New Zealand, aged 16 years and above, are entitled to a government subsidy of $1022.22 towards a pair of hearing aids, or up to $511.11 towards a single hearing aid once every six years.

There are several different subsidies that one may be eligible for.

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The Real Cost of a Hearing Aid

Walk into a hearing clinic in New Zealand and you’ll be quoted $3,000 to $10,000 for a pair of hearing aids. My concern, subsidies or not, is that very few pensioners can afford this kind of outlay, as well as ongoing servicing and replacement costs.

But what is the actual manufacturing cost? I made some inquiries.

Only $150–$300 for mid-range devices. Premium models might cost up to $500.

So how do we get from $500 to $8,000? Easy:

• Add an audiologist consultation

• Throw in a few follow-ups and a maintenance plan

• Tack on the clinic’s overheads and margin

• Then top it off with a generous helping of profit

Despite the bells and whistles, companies routinely walk away with profit margins of 40–60% or more per sale.

The hearing aid industry is a cash cow — fed by slick marketing, government and insurer subsidies, and a side-serving of fear.

Who’s Behind This?

Four global corporations dominate the hearing aid market:

• Sonova (Phonak, Unitron)

• Demant (Oticon)

• GN Hearing (ReSound)

• WS Audiology (Signia, Widex)

They don’t just make the devices — I am not sure about the situation in NZ, but, globally, they own the clinics, the batteries, the software, and the maintenance plans.

It’s a vertically integrated empire, and with hearing aids needing replacement every 4–6 years, it’s also a recurring revenue machine.

Government and Insurance Subsidies are a Recipe for Laziness, Price Gouging — and Profiteering

Subsidies and insurance don’t lower costs — they hide them, while allowing them to mushroom.

Here’s how it works:

• The government pays the bill

• Insurers skim their share - the higher the price of the product, the higher their premiums.

• Patients never see the real price

• Clinics inflate costs without pushback

And insurers? I'm sure they love it.

As medical costs go up, they raise premiums. And since they collect a percentage of those premiums, the higher the cost, the higher their profits.

It’s a self-feeding cycle:

1. Suppliers inflate prices

2. Insurers raise premiums

3. Government increases subsidies

4. Industry writes favourable regulations

5. Everyone wins — except the person paying

I saw this up close during my time at ACC head office. Industry was always well-represented on expert and consultation committees, charged with setting codes of practice and regulations — more so than the public or frontline health workers.

The system’s designed to protect incumbents, not patients.

Big Pharma is the Blueprint for Regulatory Capture

Nowhere is this unholy alliance more obvious than with Big Pharma. Take the US Food and Drug Administration (FDA) — supposedly the watchdog. In reality, it often acts like a sales arm for pharmaceutical giants.

Why?

The “revolving door”. One day you’re an executive at Pfizer. The next, you’re on the FDA approving your old company’s products. Then back again — this time with insider knowledge and stock options.

This revolving door creates:

• Biased approvals

• Fast-tracked drug releases

• Legal immunity for harm

• Suppressed competition

Here in New Zealand, the pattern’s the same — just more polite. Medsafe often defers to overseas regulators and corporate data. Advisory panels are stacked with industry-aligned experts. They'll never consult someone like me, despite my years of experience at the frontline of health. Public health campaigns increasingly look like product launches.

What Can Be Done? Here Are Some Obvious Fixes

Now, I’ll be the first to say I’m not an economist or an industry insider. But I’ve been around long enough — and seen enough from the inside — to know when a system stinks. So, here we go with some obvious solutions to get the conversation started.

I welcome better ideas — leave a comment or email me with your thoughts.

1. Let People Buy Simple Devices Freely

Most people with mild hearing loss don’t need a $10,000 device. They just want to hear better. Let them buy amplifiers or basic hearing aids over the counter or online — no prescription, no pressure.

2. Break the Clinic Monopoly

Buy the device. Then choose your own technician for tuning, repairs, or servicing — just like we do with cars and mechanics. Unbundle the product from the service.

3. Make Pricing Transparent

Clinics should be forced to publish the full breakdown of costs: the device, the audiologist’s time, software, and support. Only then can people make an informed choice.

4. Rethink How We Do Subsidies

Subsidies should go to the person, not the provider. Better yet — means-test them, and give people the power to choose where and how to spend. No more blank cheques for bloated clinics.

5. Encourage Kiwi-Made Simpler Tools

Let’s back local innovation. There’s room in the market for affordable, rugged, DIY-friendly hearing tools. We don’t need fancy. We need practical.

My View

I’m not saying hearing aids are bad. Some people really do need them. I might in a few years - who knows? But the system around them? It’s bloated, lazy, and rigged.

I believe in:

• Truthful marketing

• Transparent pricing

• Independent regulation

• Resilience over dependency

This isn’t just about hearing. It’s about how we treat people. About who profits — and who pays the price. As a nation and as individuals, we must spend our precious dollars wisely, or else go broke.

Conclusion

We should be supporting our elders to live strong, independent, connected lives — not fleecing them with overpriced gadgets and corporate spin.

It’s time to apply universal values — truth, transparency, and bodily autonomy — to this space.

Have you or a loved one Been Sold a $10,000 Hearing Aid? I’d love to hear your story — Post your ideas, solutions and experiences in the comments section below.

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Disclaimer: This article is for educational purposes only. It is not medical advice. Always consult with a trusted healthcare provider for personalised guidance.