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RENEE MONTAGNE, HOST:

We're going to hear now about one product that could have a huge market if it didn't cost so much -hearing aids. Worldwide up to 300 million people need them. But each year, only seven million people get them; the vast majority in Europe and the U.S.

On average, a set of hearing aids cost around $4,000 and is not covered by most health insurance policies. A company called Sound World Solutions is trying to do something about that.

As NPR's John Ydstie reports, it's created a high-quality hearing device that costs just a few hundred dollars.

STAVROS BASSEAS: What you see there is we are testing the device at different stages.

JOHN YDSTIE, BYLINE: Stavros Basseas is showing us around his development lab and hearing clinic in a strip mall in suburban Chicago. Basseas began as an electrical engineer in the hearing aid industry. But working with patients directly in this small clinic helped him understand their needs more deeply.

BASSEAS: And it was not just an engineering project any more. It had a human face.

YDSTIE: Basseas says when people came to him for help, he had a chance to talk to them about the effects of hearing loss, especially the social isolation most people experience.

BASSEAS: Right away they react to it. Sometimes they cry because it's like them talking to their heart, because they know what is happening.

YDSTIE: Wayne Jagusch knows the feeling. He's one of Basseas' patients.

WAYNE JAGUSCH: It's terrible when you're with people and you can't understand what they're saying. You sit there and smile like an idiot and nod your head, and you don't know whether they're saying something good or bad.

(LAUGHTER)

YDSTIE: Years ago, Basseas fitted Jagusch with top quality hearing aids which cost thousands of dollars. He's brought them in for adjustment today. But Basseas, who is president of Sound World Solutions, also recently gave Jagusch a proto-type of the $300 device the company has developed. Jagusch likes it.

JAGUSCH: This is the best I've had so far, and I've gone through a bunch of different devices.

YDSTIE: Why is it better?

JAGUSCH: Well, I like the adjustability of it.

YDSTIE: Besides cost, one of the big hurdles to hearing aid usage is the multiple visits required to get the devices adjusted properly. Sound World Solutions addresses that problem by making its device adjustable through a Bluetooth connection to a Smartphone. The app first gives the user a hearing test, using the ear-piece that looks like a very small Bluetooth phone receiver. Then the app sets the device to compensate for your hearing loss. A user can also tweak the device manually.

Basseas demonstrates.

BASSEAS: So, I have on my ear the device, the CS10. And we are, at the same time, recording whatever I hear in my ear. And the device is connected with the Smartphone, and I'm going to go through the sequence of customizing the device. If I need a little bit more clarity, I can increase the trebles, and so you can actually hear that the trebles are increased. Or if I like to listen to music and I like a little more bass, then I increase the bass.

YDSTIE: The device also has pre-sets that can be turned on and off without a Smartphone.

BASSEAS: This is a pre-set which is really for people who need plenty of clarity, plenty of boosting of the consonant sounds.

YDSTIE: Frank Lin a professor of public health and an ear surgeon at Johns Hopkins University in Baltimore. He says this kind of high quality device provides a good alternative for the millions of adults in the U.S., who have mild to moderate hearing loss. They may be reluctant to spend thousands of dollars for hearing aids and make multiple trips to get them adjusted properly.

FRANK LIN: You can get it mailed to you. You put it in your ear, you program yourself with your Android phone, and it's going to be decent - never as good as the gold standard, of course, but a whole lot better than nothing.

YDSTIE: And Lin's research shows that hearing loss is not just an irritant. It's a serious public health problem, because hearing loss increases the likelihood of declining physical, emotional and mental health. Lin is planning to use the Sound World Solutions device in his future research.

LIN: So I think the price point they're talking about is something that it makes it a much more affordable; or more importance, their approach toward it makes it a much more accessible device.

YDSTIE: Lin says another problem with the current market for hearing aids is that the handful of companies who make them have a high profit, low volume strategy. That's partly driven by the fact that each uses its own proprietary technology that costs lots of money to develop. Sound World Solutions has taken another route. It uses mostly inexpensive off-the-shelf Bluetooth technology for its device.

Tomorrow, we'll meet another of Sound World Solutions partners, David Green. His specialty is using capitalism with a twist to make medical services and products, like the firms new hearing device, accessible and affordable for poor people around the world.

John Ydstie, NPR News, Washington.

MONTAGNE: And you're listening to MORNING EDITION from NPR News.

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