An additional 5,471 seniors will be eligible for the second phase of the Government's comprehensive health insurance plan.

In the national Budget yesterday it was announced that anyone over 70 and anyone who turns 65 this fiscal year would now be able to join FutureCare.

Those who join the second phase will be required to pay $600 a month for benefits such as unlimited physician visits, $2,000 prescription drugs coverage, vision and dental care as well as overseas care when necessary.

As was the case last year, $10 million was earmarked to the programme from the Ministry of Health budget and $2 million from the Mutual Reinsurance Fund.

In total, FutureCare is expected to cost approximately $77 million if everyone eligible joins. The remaining funding will come from premiums paid by members and the aged subsidy, which is paid to King Edward VII Memorial Hospital.

The Ministry of Health has estimated that approximately 3,000 seniors will choose to join FutureCare, while others will prefer to join the cheaper and more basic Government Health Insurance Plan (HIP) or remain on their private major medical coverage.

The first phase of FutureCare a Progressive Labour Party 2007 election pledge was implemented last March.

The 2,681 seniors who joined in the first phase will now pay $300 a month, up from $260, to continue to be a part of FutureCare.

Government's more basic Health Insurance Plan will remain open for seniors at a cost of $241; currently 168 seniors are enrolled in the plan.

And while some will argue the difference in payments between phase one and phase two seniors is unfair, Health Minister Walter Roban said it made sense and ensured the long-term viability of the programme.

He said it also prevented FutureCare from bankrupting the Island, as some critics suggested it could do.

"The majority of people in the first phase of FutureCare were already enrolled in HIP," Minister Roban said.

He said this meant people in the first phase were unable to afford health care when private firms offered the cheap, basic coverage plans. Therefore, it was unlikely people admitted in the first phase would be unable to afford $600.

However, many people eligible in the second phase have already been paying upwards of $1,000 for private coverage and would be able to pay the FutureCare premium of $600 and benefit from having extra cash, he said.

"Sustainability was one of the biggest concerns," he said. "People may complain but we have to make sure it is sustainable and the seniors will still be getting access to low-cost health care. I think you will find some of the people complaining are the people currently paying $1,800 for private major medical coverage.

"Seniors in the second phase will pay $600 a month and the Government will pay $500 a month for them to be enrolled in FutureCare [through KEMH's aged subsidy and $12 million budget allocation].

"We spent a lot of time deciding on the premiums to ensure that the cost is not going to be too much. We feel that $600 is reasonable, especially when compared to the private sector."

On Government's decision to keep HIP open to seniors when it was originally closed to them for several months last year, Minister Roban said: "We wanted to give seniors choice, they can pay $241 for basic coverage, $600 for FutureCare, or they can go to the private system."

And he said be believed the $600 premium illustrated Government had thought out the programme.

"I believe it does show without a doubt that we have had fiscal prudence in creating this programme," he said. "Having the first year phase was also helpful in that we could see what claims were, and we have now chosen a price so it will be sustainable.

"For the second phase we went back to the actuaries and took another look at it."

"This was well thought out."

The third phase opens April 1, 2011. Minister Roban said it would be open to seniors between 60 and 65, though he did not say what their premium would be.