Are CPAP/APAP sales like hearing aids???

General Discussion on any topic relating to CPAP and/or Sleep Apnea.
stcrim
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Are CPAP/APAP sales like hearing aids???

Post by stcrim » Wed Jun 24, 2015 7:15 pm

My DME supplier is letting me return my RemStar Pro with C-Flex+ and making me a great deal on a Resmed AirSense 10. Is he stuck with the first machine since it's used or will the OEM reimburse him in the way hearing aid companies do??? Based on the deal I'm getting on the AirSense 10 and the prices I see on the internet the markup on those much be real step from actual wholesale to retail.

I don't won't my supplier to take a bath - they have been absolutely great!!! Any thoughts?

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LSAT
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Re: Are CPAP/APAP sales like hearing aids???

Post by LSAT » Wed Jun 24, 2015 7:21 pm

He should be reimbursed...same with masks that you try and he exchanges for you

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Tatooed Lady
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Re: Are CPAP/APAP sales like hearing aids???

Post by Tatooed Lady » Wed Jun 24, 2015 7:23 pm

I wouldn't worry about your DME. He wouldn't do a trade up if he couldn't afford it, either because of markup being what it is on the stuff YOU have bought, or on what others have. Probably lives in a nice house and drives a newer car.

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library lady
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Re: Are CPAP/APAP sales like hearing aids???

Post by library lady » Wed Jun 24, 2015 7:33 pm

stcrim wrote:My DME supplier is letting me return my RemStar Pro with C-Flex+ and making me a great deal on a Resmed AirSense 10. Is he stuck with the first machine since it's used or will the OEM reimburse him in the way hearing aid companies do??? Based on the deal I'm getting on the AirSense 10 and the prices I see on the internet the markup on those much be real step from actual wholesale to retail.

I don't won't my supplier to take a bath - they have been absolutely great!!! Any thoughts?
Since when do hearing aid companies get reimbursed for hearing aids?? I've worn hearing aids since 1949 and I've never heard of that. I give my old ones to a charity that refurbishes them and offers them to people in need of them. I kept a couple old ones with broken switches that still have a little bit of life in them in case one of my good ones needs to be sent in for repair.
EDIT:
Answer to your question: No, hearing aids are not handled the way CPAP gear is. Very few insurance companies cover hearing aids and I've always paid 100% out of pocket... A few companies do offer very limited coverage, I think.

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chunkyfrog
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Re: Are CPAP/APAP sales like hearing aids???

Post by chunkyfrog » Wed Jun 24, 2015 7:52 pm

I've only worn BTE hearing aids, even a used aid can be cleaned, reprogrammed, and fitted with a new ear mold.
My latest model has open fit, receiver in canal, and is completely recyclable.
I always keep the previous model --just in case.
Charities may not be interested in a model that is very old.

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stcrim
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Re: Are CPAP/APAP sales like hearing aids???

Post by stcrim » Wed Jun 24, 2015 8:15 pm

By law hearing aids have to be returnable for a full refund for a certain amount of time. They cost very little to make and have huge markups for the retailer. Most OEMs will allow the retailer to return them for full credit. There is no risk for the consumer or the retailer.

I was just wondering it CPAPs were the same.

BTW I can't wear BTEs, they make me nuts - afraid one will drop off. I have several in a drawer somewhere. My aids are now completely in the canal and with volume control. The CICs are now as powerful as the BTEs are. I love volume control and don't want the other bells and whistles.

I don't won't me CPAP DME to be out of pocket - they have been great to me...

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bwexler
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Re: Are CPAP/APAP sales like hearing aids???

Post by bwexler » Wed Jun 24, 2015 10:14 pm

library lady wrote:
stcrim wrote:My DME supplier is letting me return my RemStar Pro with C-Flex+ and making me a great deal on a Resmed AirSense 10. Is he stuck with the first machine since it's used or will the OEM reimburse him in the way hearing aid companies do??? Based on the deal I'm getting on the AirSense 10 and the prices I see on the internet the markup on those much be real step from actual wholesale to retail.

I don't won't my supplier to take a bath - they have been absolutely great!!! Any thoughts?
Since when do hearing aid companies get reimbursed for hearing aids?? I've worn hearing aids since 1949 and I've never heard of that. I give my old ones to a charity that refurbishes them and offers them to people in need of them. I kept a couple old ones with broken switches that still have a little bit of life in them in case one of my good ones needs to be sent in for repair.
EDIT:
Answer to your question: No, hearing aids are not handled the way CPAP gear is. Very few insurance companies cover hearing aids and I've always paid 100% out of pocket... A few companies do offer very limited coverage, I think.
I am clearly one of the lucky ones. My Humana Medicare Advantage plan paid 100% for a pair of BTE hearing aids. My previous plan made a token teaser payment which left the final price just 20-30% above full retail at Costco.

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chunkyfrog
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Re: Are CPAP/APAP sales like hearing aids???

Post by chunkyfrog » Wed Jun 24, 2015 10:29 pm

I got mine at Costco. Top notch, brand name European product.
The previous instrument cost me nearly twice as much at the university,
and Sam's club only sells a house brand of unknown source and quality--
I never shop with a ten foot pole.

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Re: Are CPAP/APAP sales like hearing aids???

Post by TheChuckster » Thu Jun 25, 2015 7:57 pm

Considering that a CPAP is a glorified fan in a box that costs a pittance to maufacture, yes. There's a reason you see old school monochrome dot matrix LCDs on the Respironics boxes. Someone really needs to disrupt the industry.

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Re: Are CPAP/APAP sales like hearing aids???

Post by palerider » Thu Jun 25, 2015 10:29 pm

TheChuckster wrote:Considering that a CPAP is a glorified fan in a box that costs a pittance to maufacture, yes. There's a reason you see old school monochrome dot matrix LCDs on the Respironics boxes. Someone really needs to disrupt the industry.
*if* you consider 170$ish a pittance, sure.

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archangle
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Re: Are CPAP/APAP sales like hearing aids???

Post by archangle » Thu Jun 25, 2015 11:08 pm

palerider wrote:
TheChuckster wrote:Considering that a CPAP is a glorified fan in a box that costs a pittance to maufacture, yes. There's a reason you see old school monochrome dot matrix LCDs on the Respironics boxes. Someone really needs to disrupt the industry.
*if* you consider 170$ish a pittance, sure.
Interesting number. Where's that come from?

Not trying to be a smartass, I'd love to have some trustworthy data on this.

Hardware manufacturing cost, or with development cost figured in?

I'll have to admit I never really stopped and gave much though to actual variable manufacturing costs.

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palerider
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Re: Are CPAP/APAP sales like hearing aids???

Post by palerider » Thu Jun 25, 2015 11:20 pm

archangle wrote:
palerider wrote:*if* you consider 170$ish a pittance, sure.
Hardware manufacturing cost, or with development cost figured in?
hardware, something I googled up a while back. though I can't find it at the moment.

just like cell phones and game consoles and such get torn down and the manufacturing cost for components gets estimated, I found a couple pages where some group had done that with a resmed and system one, and the cost was somewhere around 160-170ish for both.

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Re: Are CPAP/APAP sales like hearing aids???

Post by archangle » Fri Jun 26, 2015 1:07 am

palerider wrote:
archangle wrote:
palerider wrote:*if* you consider 170$ish a pittance, sure.
Hardware manufacturing cost, or with development cost figured in?
hardware, something I googled up a while back. though I can't find it at the moment.

just like cell phones and game consoles and such get torn down and the manufacturing cost for components gets estimated, I found a couple pages where some group had done that with a resmed and system one, and the cost was somewhere around 160-170ish for both.
Thanks. I'm familiar with the process, have even been peripherally involved in it myself. It's all pretty much standard hardware parts, so it shouldn't be too hard for someone familiar with electronic manufacturing. I'd appreciate the source if you ever find it.

Sounds like it's probably the variable manufacturing cost. The number sounds about right, maybe a bit high, given the volume of machines made.

They've probably made enough machines to pay off the R&D and up front regulatory costs by now. Throw in the variable regulatory, distribution and sales costs, and it's probably about 2X.

I'm trying to think what it "should" cost to manufacture. It's a very low power computer, power supply, cheap display, a dozen or so fairly low power driver transistors, pressure, flow, and humidity sensors, a motor and fan, plastic plumbing and a nice case. The fan is a fairly neat complicated design, but it's still basically a motor and plastic impellers. It's high quality plastic, but nothing that exotic or hard to manufacture.

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chunkyfrog
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Re: Are CPAP/APAP sales like hearing aids???

Post by chunkyfrog » Fri Jun 26, 2015 8:28 am

A significant amount can be attributed to testing and government regulations,
but the rest, as usual, is simply whatever they can get away with.

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