Hearing Aids for VR Customers

Discussion Paper

Background

An individual who is deaf or hard of hearing is “an individual who, in order to communicate, needs to supplement auditory information by depending primarily upon visual modes, such as sign language, speech reading, and gestures, or reading and writing.” (34 CFR §396.4 (iii))

Hearing aids are rehabilitation technology that may be purchased to improve a customer’s ability to participate in employment and/or training required for a specific employment outcome.

Issue

The currently published Standards for Providers manual provides a pricing structure that is used by Vocational Rehabilitation. The following established discounts apply to the purchase of all hearing aids and accessories:

•Hearing aids are discounted 35 percent from the Manufacturer's Lowest List Price;

•Accessories are discounted 25 percent discount from the Manufacturer's Lowest List Price; and

• The service charge is the dispenser's usual and customary charge.

The currently published standards do not specifically state that purchase of “refurbished hearing aids and devices” is not allowed. This creates concern since refurbished aids and devices do not include the same warranty or may not have a comparable product life as new aids and devices, but they are at the same cost of new aids and devices. This creates the risk of TWC’s pricing structure not aligning with expectations regarding the purchase of new devices. Refurbished aids are not as high quality and customers may incur the cost of repairing or repurchasing aids and devices sooner than if they would have received new products.

In addition, clarification is necessary in the Rehabilitation Services Division Standards for Providers manual to:

·  provide clear instructions regarding the roles and responsibilities of hearing aid manufacturers and hearing aid dispensers;

·  include a process for submitting price quotes for review and authorization by Vocational Rehabilitation (VR) staff; and

·  clarify documentation required for payment.

Recommendation

Policy Recommendations

Staff recommends that the definition of new hearing aids be revised to clarify that refurbished hearing aids are not considered “new” and, therefore, purchase of refurbished hearing aids is not allowed.

Procedural Changes

Staff recommends that the Standards for Providers content be updated in the following ways for clarity and to ensure accurate and timely processing of payments for services and goods rendered:

·  Clarify language regarding the roles of manufacturers and hearing aid dispensing staff;

·  Include a specific list of required procedures for manufacturers and hearing aid dispensing staff to submit price quotes to VR staff for review and authorization; and

·  Include a specific list of the documentation required from both the manufacturer and the dispenser before payment can be authorized.

DP VR Standards Rev_Hearing Aids 4-11-17.docx

Agenda Item: 04/11/17 Commission Meeting