Why isn't the receiver working on my iPhone 5?

I've had my iPhone 5 for a year and a half. Everything has been great until yesterday afternoon. I can no longer hear calls through the ear piece. The other end of the call can hear me, but all I get is silence. I can only make actual calls using the speaker. I've read all the threads and tried everything, to no avail. My carrier (Verizon) said it would cost $400 to replace the phone, which is utter BS.
So here are my questions - 1) Has Apple come up with a solution to this problem, since it's obviously one on their end? 2) If I send this to Apple to get repaired (since I'm nowhere near an Apple store), how much would it cost? 3) Would I get a spare in the meantime?
I feel like I'm getting screwed by Apple and Verizon at the same time, and I've completely had it with both companies.
Can anyone help?

GOing to an Apple store genius bar is by far the best bet...they do some repairs now in-store for the iPhone 5-series, or if they need to replace and it is out of warranty the fee is $269 for the iPhone 5.  Time it takes depends on what needs to be done, but in most cases is while you wait.

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