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  ESCO Insurance

email: reimburse@cochlear.org







Most cochlear implant manufacturers have a contractual agreement with Ear Service Corporation (ESCO) of Minneapolis, MN.

For example, under this agreement Cochlear Corporation agrees to refer customers to ESCO for the purchase of insurance policies to cover theft and loss of the speech processor and other external components (such as headsets, cable, coils, and microphones). Normal wear and tear and accidental damage is not covered. ESCO then pays Cochlear approximately 18.5 percent of the premium cost for every patient that purchases a policy.

ESCO policies generally cost $195 for one year and place a limitation on the number of replacements. ESCO also has a purchasing agreement to buy refurbished parts for replacement of components at a considerably reduced price. For example, a new processor may cost upwards of $5,450 but ESCO purchased them from the manufacturer for only $800-$1,200.

The Social Security Act Amendments of 1994 applies to both ESCO insurance and service contracts (or extended warranties). Since the benefits under ESCO insurance are already provided by Federal and State health plans, it is illegal for ESCO to sell policies to beneficiaries of these plans. Since 1997, ESCO has agreed to make refunds to device users who previously purchased coverage but were covered under a Federal or State health plan.