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Finally, the bill hands Medicare HMOs which have been ripping off Medicare for years an extra $46 billion. Since 1985, Medicare has paid HMOs for seniors who choose to enroll. The payment formula has allowed HMOs to collect far more than it would have cost the taxpayers to care for these seniors in the traditional Medicare program. The Congressional Budget Office and the General Accounting Office have estimated these extra costs at about $2 billion per year. Yet HMOs burdened by administrative overhead far higher than Medicare's complained they couldn't make a profit from Medicare patients.

Bush's solution? Send them more money. So in 2004, Medicare will pay HMOs an extra $552 above the cost of traditional Medicare for each senior they enroll, according to an estimate by the Commonwealth Fund. Incredibly, the Republicans (and many Democrats) describe this corporate welfare program as a pro-competition cheap medical coverage canada health insurance