Let me introduce myself first. I have had hearing loss since birth. In the meantime, I am a hearing aid user. It is a really essential device to us, the hearing impaired. Without it, we cannot interact with the people around us and build a relationship. Therefore, one day, I wanted to buy an insurance that covered my valuable hearing aids.So, when my hearing aids are broken or not in function, I can get claims to purchase a new pair of hearing aids immediately without worrying the financial status. I have asked many insurance companies. None of them offered an insurance covered hearing aids. I felt disappointed and shocked. Why do they deny to satisfy my need? Don’t’ they want to earn a profit?
After questioning closely, the agency told me the reason of not covering hearing aids. She said that hearing aids are elective. It is not compulsory to the hearing impaired. I found this reason ridiculous. A hearing aid is as important as a pair of glasses I think. For the hearing impaired, the quality of life must deteriorate without hearing aids. We cannot interact with people. The relationship between family, friends and us is less close. In the worst case, we may be isolated. It may harm our spiritual and mental health. So, wearing hearing aids is a must, not elective to us. Therefore, I thought that the agency deliberately lied to me.
However, there must be a reason for every phenomenon. So, what is the autentic reason for insurance company not covering hearing aids? When I back to home, I turned on my laptop instantly to find the real solution. Finally, I came up with a reason. Hearing aids are not covered by insurance because of … the high prices of hearing aid.
To explain the cause, I should first introduce you the concept of insurance. How does an insurance company earn money? When you buy an insurance, you have to pay the premium. If you die, the insurance company would offer claims to the beneficiary. Then, do a simple mathematic calculation. If there are 100 people buy insurance from an insurance company, assuming the premium only costs one dollar per person, then, there are $100 in the money pool. Suddenly, an insured person die. The insurance company gives claim to the beneficiary of the person. Let say the claim is $50. Then, the difference between the premium and the claim is the profit of the insurance company.
Now, imagine the case again with some modification. Hearing aids are covered by the insurance. Let me tell you a fact first. There are more than 50% of those over 75 have hearing loss and use hearing aids. Thus, the malfunctioning of hearing aids is a likely event which means the event has a high probability to happen. On the contrary, death is an unlikely event. So, imagine the case again. There are 50 people with hearing loss and 50 normal people. Same as before. The premium is $1 per person. However, death is a likely risk while the malfunctioning of hearing aid is a likely risk. So, this time, there are one people die and two people’s hearing aids are broken. The insurance company makes claim with a total sum equal to $80. Finally, the insurance can only earn $20 which is less than before. The insurance company earns less profit when hearing aids are covered in the insurance policy. If you are running a business, which case do you prefer? Earn More? Or, earn less. Of course, we would choose the first one, EARN as much as possible.
Therefore, the actual reason is that insurance company cannot earn a profit if the expensive hearing aids are covered. I know that earning profit is the main concern to the businessman. But, as a hearing aid user, I hope hearing aid can be covered soon to secure our life quality.
Do you agree with the approach of the Insurance company? If you have questions about this topic, leave your comment below. I am more than happy to answer you.