if an insurance policy doesn't cover hearing aids - and the majority of them don't - the TransEar isn't covered, since it's classified as a hearing aid.
The BAHA is not a hearing aid, it's an implant or a prosthesis, which is why insurance companies do cover it. Sometimes it takes a little convincing on the patient's and the doctor's part, but Cochlear has a new division (called OMS) that helps BAHA candidates get the surgery and the processor paid for.
As far as replacement processors or upgrades go, I've heard that many people have an insurance policy that will pay for a new processor every 5 years. Although I upgraded in April to the BP100, my Divino was only 2 years old at the time, so I didn't ask my insurance company to pay for it. I paid for it myself out of my flexible spending account at work. But next time, if it's been 5 years since I got my first BAHA (my Divino), I'm going to see what my insurance policy says about coverage.
BAHAs are not for everyone - for lots of reasons - but I wouldn't worry too much about having a "box" on your head if you think the BAHA might be right for you. Obviously it's a personal choice, but I've seen many men with BAHAs and CI's (Cochlear Implants) on their heads and they all wore them proudly. Lots of times in life you have to do what you feel is best for you and if you choose to get a "box" on your head that bothers other people, that's not really your issue, it's theirs.
Just my 2 cents worth.