U.S. raises Medicare
payments to insurers by 0.45 percent in 2018
Send a link to a friend
[April 04, 2017] By
Caroline Humer
NEW YORK (Reuters) - 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. The
change in Monday's final rate reflects the government's assessment
that effective spending growth will be slightly lower than it had
originally targeted.
![](http://archives.lincolndailynews.com/2017/Apr/04/images/ads/current/atlantanationalbank_sda_072114.png)
Insurers who provide these plans include WellCare Health Plans Inc,
Anthem Inc, Humana Inc, UnitedHealth Group Inc and Aetna Inc. Shares
in the companies were little changed in extended trading.
The Centers for Medicare and Medicaid Services, a 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.
The government announcement included a request from the public on
other changes it could make to improve the Medicare and Medicare
Part D programs.
[to top of second column] |
![](http://archives.lincolndailynews.com/2017/Jan/26/images/ads/current/Symphony_lda_2017.png)
Ipsita Smolinski, managing director at research firm Capitol Street
in Washington, said that the Trump administration wants to simplify
Medicare Advantage so that insurers do not have to "jump through so
many hoops."
That could mean changing the system of measurements used by the
government to pay insurers more or less depending on how they are
rated as well as other certification and audit programs, she said.
Insurers still face uncertainty for 2018 over the health insurance
tax, she said. The Republican health plan that was proposed by
Congress would have eliminated the tax, currently on hiatus, but the
bill’s failure has put the tax back on the table for 2018.
(Reporting by Caroline Humer; Editing by Marguerita Choy and Lisa
Shumaker)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
![](http://archives.lincolndailynews.com/2017/Apr/04/images/ads/current/Applegate_exc_sda_daily_030415.png) |