Congress passes a budget bill late last week that President Obama is expected to sign. The good news is that the budget deal will prevent almost a 50% increase in Medicare premiums for 30% of Medicare beneficiaries. The premiums increase will be prevented by the federal government receiving a loan from the Treasury. Medicare beneficiaries will repay the loan by an added monthly premium of $3.00 over the next several years.
However, the budget deal also will have significant negative consequences on future Social Security payments, potentially significantly reducing future benefits. Click on the below article for a discussion of these potential negative impacts.