What would you do? Adapting listening assessment for hard of hearing students

Here’s another what-would-you-do scenario. I got this question from an in-service K-12 language teacher recently. She explained:

I have a student who has a hearing aid and lip reads to make sure he’s understanding his teachers. His 504 says to use captions/subtitles with videos during instruction, but nothing about during assessments. My group might also be doing a listening comprehension (reading will be separate) assessment soonish. How might I design this assessment to most effectively reach this student without using captions? (Colleagues are concerned that students will not always use the audio in combined listening/reading assessments, and thus we are not actually assessing both skills the majority of the time.)

Here’s what I think. 

1. “His 504 says to use captions/subtitles with videos during instruction, but nothing about during assessments.” His 504 should ideally address classroom practices and assessment practices alike, and in very similar ways. Instruction is (in theory) aligned with assessments so one without the other doesn’t make sense and creates a less reliable assessment experience. I suggested that the teacher try to advocate for getting the 504 updated to reflect that.
2. “How might I design this assessment to most effectively reach this student without using captions?” I suggested leveraging video clips where there’s lip reading and nonverbal cues (compared to audio-only clips), assuming the student uses those skills in their home language communication. 
3. “Colleagues are concerned that students will not always use the audio in combined listening/reading assessments, and thus we are not actually assessing both skills the majority of the time.” Logically I understand why language instructors are concerned about this. It’s hard not to see the differences between listening and reading processes and the language skills used in each. However, I’d argue that it’s ableist not to allow captions for this student, or to create a separate, alternative assessment altogether that takes into account testing “fairness.” It’s already inherently not fair to test the physical listening ability for someone who already does not hear (let alone listen) the same way as typical students, even in their home language. I told my teacher friend that asking colleagues to embrace fuller captioning options would likely be a hurdle harder to address than getting the student’s 504 updated, but I’d remiss if I didn’t mention the assessment conundrum as an important piece of the overall puzzle). 

What do you think about this scenario? Have you or your colleagues found creative ways to address fair assessment and classroom practices for hard-of-hearing students?