President Trump’s 2018 fiscal budget was released earlier this week. The short take: scientific and medical research budgets take a big hit.

The CBO dropped its bomb on the proposed AHCA bill. The short take: premiums and deductibles will rise, 23 million additional uninsured by 2026.

As we’ve noted before, the ones who will benefit in the unfolding scenario are wealthy individuals, corporations and young people with no medical conditions. And insurance companies and medical device companies. Older people, sicker people and people on Medicaid will lose. And the ones affected by the proposed budget? NIH, CDC, FDA, ONC, National Science Foundation, National Institute of Allergy and Infectious Diseases.. the list goes on and on. Medicaid deserves mention as the single biggest loser – $ 814 billion over the next ten years.

The CBO report indicates that the AHCA bill would save the country $119 billion over 10 years which, after taking away $ 814 billion from Medicaid, would be the fiscal equivalent of planting a victory flag on nuclear wasteland.

With no certainty over the continuation of federal funding, many insurers are leaving the ACA marketplace and proposing a huge increase in premiums. This would likely lead to the self-fulfilling prophecy by the Trump administration that the exchanges are imploding. The old and the sick will abandon the exchanges because there will be no subsidies for the drastic premium increases, and with the individual mandate gone the young and healthy won’t care to enroll. So yeah, the exchanges may just implode.

The ONC will suffer a budget cut as well however the good news is interoperability and IT security will remain high focus areas.

Damo Consulting’s quarterly analysis of healthcare IT services indicates 4 quarters of declining growth rates for major firms with no bottom in sight.

A new survey indicates that CIO’s still control IT spend.

Sign up for our newsletter The Healthcare Leader