U.S. raises Medicare payments to insurers by 0.45 percent in 2018

The U.S. government on Monday slightly improved its final payment rate for health insurers who offer Medicare Advantage plans for older people and the disabled, settling on an increase of 0.45 percent on average for 2018.

Medicare Advantage, an alternative to the standard fee-for-service Medicare in which private insurers manage health benefits, is the fastest growing form of government healthcare, with enrollment of 18 million people last year.

While the outlook for other forms of U.S. government healthcare uncertain under President Donald Trump, health insurers are banking on Republicans embracing the use of Medicare Advantage.

Each year the government sets out a target rate that it will pay insurers, which then use the data to decide on coverage areas and costs.

On Feb. 1, the government proposed an increase of 0.25 percent. Monday's is a final rate.

The Centers for Medicare and Medicaid Services, the division of the U.S. Department of Health and Human Services, also said that it would be providing incentives to encourage organizations to develop new plans with "innovative" provider network arrangements.