With legislative talks hitting a  brick wall, Medicare funding won't be significantly affected in 2012, but major  cuts could occur by 2013, according to Reuters.

A  super committee originally was slated to cut Medicare funds by $500 to $700  billion during the next 10 years, the news source noted. Instead, a two percent  cut, which equals more than $120 billion over the next 10 years, will occur. The  cuts will affect hospitals, insurers, assisted living facilities, and other  healthcare-related aspects.

But  not everyone is convinced that the two percent cut will be  noticeable.

"Two percent is not a lot for  Medicare to absorb," Joseph Antos of the American Enterprise Institute, told the  news source. "About all that happens is a few more providers, like doctors and  hospitals, stop accepting new Medicare patients. It's light compared to what  we've seen with really big pieces of deficit reduction legislation in the past,  particularly in the 1990s."

However, this could affect a  significant number of individuals who already depend on such plans, as well as  those approaching retirement.