The White House will propose raising taxes on people earning more than $400,000 and reduce what Medicare pays for prescription drugs in a bid to keep the programme stable, the Washington Post reported on Tuesday.
"The president's budget extends the life of the Medicare Trust Fund by at least 25 years," the report said citing the plan.
The White House's proposal would raise the net investment income tax, created by the Affordable Care Act, from 3.8 per cent to 5 per cent for all Americans earning more than $400,000 per year, according to the report.
The White House did not immediately respond to Reuters' request for comment.
Joe Biden has said the plan will extend Medicare for another generation, The New York Times reported.
The report adds that Mr Biden's budget will pledge to make the Medicare Trust Fund solvent beyond 2050, "without cutting a penny in benefits".
