In order to get non-hospital service cover, seniors will have to pay an extra $11.60 per month (a total of $78.20) as from January, 2005.

This hike is to make up for the shortfall caused by the program’s new prescription drug coverage and preventive services, which includes a physical exam. Money will also go towards increasing Medicare’s trust fund.

As authorities tell people that paying a ‘little’ more in order to get a better service is a good thing, opinions vary from frustration at the pace of change, anger at paltry drug discounts and a feeling that the only real beneficiaries are drug companies.

There is anger in the USA over mistakes that were made in calculating what the whole Medicare bill would cost. The Congressional Budget office made a $134 billion mistake in their estimates. They said the bill would not cost more than $400 billion. After the bill was signed the Bush administration realised the costs were more likely to exceed $543 billion.

Authorities are telling seniors that the 2006 increase will not be as high the 17% one in 2005.
v Both Republicans and Democrats say the Medicare program is now confusing.

John Kerry says people should be allowed to import cheaper drugs from Canada.

Kerry campaign spokesman Phil Singer said “……when it comes to helping seniors, George Bush has proven that he's taking us in the wrong direction."

Many are blaming the 17% increase on poor management.

Robert Hayes, President, Medicare Rights Center, said "…..the increase is a body blow to millions of older Americans living on fixed incomes."