By Tim Bonfield, Enquirer staff writer
and the Associated Press

Medicare premiums for doctor visits and other non-hospital services will rise 17 percent next year in the largest increase in the program's 40-year history, the Bush administration said Friday.

Monthly payments for Part B of the government health care program for older and disabled Americans will jump to $78.20 from $66.60. The $11.60-a-month increase adds up to nearly $140 a year.

The increase reflects rapidly rising health costs and last year's Medicare overhaul, said Dr. Mark McClellan, administrator of the federal Centers for Medicare and Medicaid Services.

The news stirred anger among area seniors.

"This is ridiculous. President Bush just said (Thursday) that his administration cared about senior citizens. The reality is that President Bush is not sensitive to senior citizens and their needs," said Marilyn Hyland, a former Hamilton County commission candidate who leads the All-American Senior Health Coalition.

Medicare costs are rising for several reasons, McClellan said:

• Last year's Medicare overhaul gave physicians a 1.5 percent raise instead of a planned 4.5 percent cut in Medicare payments.

• The program also added its first-ever prescription drug benefit, which started this year with a complicated set of discount drug cards and calls for launching a bigger drug benefit in 2006.

"The new premiums reflect an enhanced Medicare that is providing seniors and people with disabilities with strengthened access to physician services and new preventive benefits," McClellan said.

Critics also attacked the timing of Friday's announcement - coming just after the Republican convention, just before the Labor Day weekend and while a hurricane bears down on Florida and its nearly 3 million Medicare recipients.

"This is a cynical attempt to bury bad news by leaking it out when you hope no one is watching," said Rep. Fortney "Pete" Stark, D-Calif. "This administration has had four years to improve Medicare and instead have made it worse. Today's news reflects the reality, not rhetoric, of this administration's bad record on Medicare."

McClellan denied any effort to coordinate the release with events. "We're getting these numbers out as soon as we can," he said.

Medicare premiums have been increasing at an accelerating pace - up 13.5 percent in 2004 and 8.7 percent last year.

In addition to the monthly payments, the deductible for Part B services will rise $10 next year, to $110, another change mandated by the Medicare law.

About 93 percent of Medicare's 41.8 million beneficiaries are enrolled in Part B, which helps pay for physician services, hospital outpatient care, durable medical equipment and other services, including some home health care.

Meanwhile, the government also said deductibles will be increased for the Part A portion of Medicare that pays for hospital stays, skilled nursing facilities and some home health care. Deductibles will rise $36 to $912 next year.

However, McClellan said new preventive health services that Medicare will begin covering in 2005 will help save money for seniors, including a physical for new Medicare members and screening for diabetes. Also, the 4.6 million people in Medicare managed care could see their out-of-pocket expenses decline next year.

"On net, Medicare beneficiaries are saving money," McClellan said.

Robert Hayes, president of the New York City-based Medicare Rights Center, blasted the Medicare rate increase.

"This record high 17.3 percent Medicare premium jump is a body blow to millions of older Americans living on fixed incomes. Older Americans already are staggering under the relentless increases in the cost of prescription drugs," Hayes said.

Hyland said the Medicare premium increase comes after the Bush administration launched a discount prescription drug program that has largely failed to impress seniors. It also follows recent reports that the number of uninsured people in America has risen to record levels.

"Bush's record on health care has been obscene. The discount drug cards were a farce and now this," Hyland said.

Hyland said John Kerry would do a better job on senior health care issues.

"This isn't going to change without a change in presidents," she said.

Price Hill resident Jacqueline Annis, 76, also is disgusted with the latest Medicare announcement. Paying an extra $139 a year for doctor coverage will be a real pinch for her, she said.

"Nobody knows who's running the asylum anymore," Annis said. "You can write your congressman all you want, but it doesn't do any good."

However, Annis still plans to vote for Bush in November.

"I hate John Kerry. I just despise that man," Annis said.

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E-mail tbonfield@enquirer.com