The House passed a bipartisan budget deal Wednesday that would cut funding for Medicare and avoid a looming spike in premiums for about 30% of Medicare Part B beneficiaries.
About $80 billion would be offset by spending cuts elsewhere in the budget. The deal, reached after intense negotiations between the White House and congressional leaders, raises the federal borrowing limit to avert a spending showdown.
The legislation now heads to the Senate, which is expected to approve it before Tuesday's deadline for increasing the so-called debt limit. It gives the government authority to borrow freely through March 2017.
The plan retains spending cuts known as sequestration under the Budget Control Act of 2011 and limits future payment rates for hospitals that set up or buy off-campus facilities.
The bill also calls for approximately $112 billion in additional spending over two years to be allocated in upcoming legislation negotiated by the House and Senate.
A coalition of Democrats, GOP defense hawks and pragmatic Republicans supported the measure.