The bad economy is worsening the already-shaky finances of Medicare and Social Security, draining the trust funds supporting them faster than expected and intensifying the need for Congress to shore up the massive benefit programs, the government said Friday.
Congress is putting off changes to Social Security, but the massive retirement and disability program still faces long-term financial problems from an aging population and an economy that has been slow to rebound.
Congress is poised to send the White House its first rollback of last year's health care law, a bipartisan repeal of a burdensome tax reporting requirement that's widely unpopular with businesses. Even President Barack Obama is eager to see it gone.
Republican lawmakers charge that the AARP, which supported the Affordable Care Act of 2010, will profit from its passage, and that the organization should be stripped of its federal tax exemption.
The government is projecting a slight cost-of-living adjustment for Social Security benefits next year, the first increase since 2009. But for most beneficiaries, rising Medicare premiums threaten to wipe out any increase in payments, leaving them without a raise for a third straight year.