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March 16, 2017 at 02:37 PM
The Trump administration has sketched out a vision of the federal budget that could create opportunities for health claim information technology companies.
The administration has included hints at possible contracting opportunities in a budget blueprint for federal fiscal year 2018. Federal fiscal year 2018 will start Oct. 1.
Related: Obama budget blueprint impacts life & health insurance industries
The blueprint gives the public a rough idea of what the administration wants its formal budget proposal to look like. The numbers could look much different in the formal budget proposal, and Congress may make much more dramatic changes once it gets to work on the budget.
But, for now, the administration is asking to cut discretionary spending 1.2 percent, to $1.15 trillion. Economists expect the United States to generate about $20 trillion in gross domestic product in 2018. Discretionary spending would amount to about 6 percent of the total.
The initial calls for dramatic cuts in funding for two departments involved in overseeing health insurance and other employee benefits.
Funding for the U.S. Department of Health and Human Services, excluding spending on benefits associated with Medicaid, Medicare, the Affordable Care Act premium tax credit, and other entitlement programs, could fall 16 percent, to $65 billion.
Funding for the U.S. Department of Labor might fall 21 percent, to $9.6 billion.
The administration leaves out any specific references to funding for ACA-related activities or for activities related to other benefits laws, such as the Health Insurance Portability and Accountability Act.
In the U.S. Department of Veterans Affairs section, however, the administration says it wants to increase discretionary spending by $4.6 billion to “improve patient access and timeliness of medical care services.”
The blueprint version of the budget “continues critical investments aimed at optimizing productivity and transforming VA’s claims processes,” the administration says.
The blueprint budget “invests in information technology to improve the efficiency and efficacy of VA services,” the administration says, adding that the budget “avoids the cost of maintaining outdated, inefficient systems.”
