As U.S. hits debt ceiling, here's what it could mean for Social Security and Medicare

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As U.S. hits debt ceiling, here's what it could mean for Social Security and Medicare
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As the debt ceiling deadline looms, here's what it could mean for Social Security and Medicare.

Negotiations over the federal debt ceiling mark one of the first big challenges the new Congress will face.

"The consequences are dire, because a default would not only disrupt Social Security and Medicare benefits, but also cause a global economic recession or worse," he said.If the U.S. were to default on its debt, it would be unprecedented. "There's a good chance that benefits for retirees and people with disabilities and survivors would be disrupted," he said.

Meanwhile, Medicare payments may fluctuate, while other areas like federal employee salaries and food benefits through SNAP may stop. The process may be politically "messy," Fichtner said.

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