I suspect that this statement may be completely accurate. And I think that it is likely a sign of things to come with other companies.
Speaking only from the perspective of my insurance, which is Medicare Advantage, I am required to use only providers within network to receive my benefit. To become an in-network provider, the audiologist has to accept an agreed upon price for a pair of hearing aids. For the top of the line, full featured hearing aid, the price is $5000. The insurance company pays $1500 and I pay $3500. So, my benefit is both a discount and a subsidy.
My insurance contract runs in 3 year cycles and the negotiations occur in the year before the contract goes into effect.
The reason I think that the quoted statement is accurate regarding Oticon helping providers is that the in-network providers are locked in for 3 years once they agree to participate. In the past 3-4 years we saw rising costs during the Covid epidemic. While inflation gas eased, those costs have not come down from where they rose. So, the $5000 price is no longer covering overhead + paying for the Audi’s time. Yet, the Audi’s can’t get out of this agreement and can’t re-negotiate it.
The only way to get around this dilemma is fir companies to do what Oticon is doing, which is to refuse to sell hearing to the insurance companies or their middle men at the dopisciunted price which enables them to offer them to us at $5000.
As one of the two biggest volume companies, Oticon can afford to be the one who goes first. Others will follow.