“I just see a huge train wreck coming down,” Senate Finance Committee Chairman Max Baucus, D-Mont., told Obama’s health care chief during a routine budget hearing that suddenly turned tense.

Baucus is the first top Democrat to publicly voice fears about the rollout of the new health care law, designed to bring coverage to some 30 million uninsured Americans through a mix of government programs and tax credits for private insurance that start next year.

The six-term Democrat is also expected to face a tough re-election in 2014. Baucus is still trying to recover from approval ratings that nosedived amid displeasure with the health care law in his home state.

Normally low-key and supportive, Baucus challenged Health and Human Services Secretary Kathleen Sebelius at Wednesday’s hearing.

He said he’s “very concerned” that new health insurance marketplaces for consumers and small businesses will not open on time in every state, and that if they do, they might just flop because residents don’t have the information they need to make choices.

“The administration’s public information campaign on the benefits of the Affordable Care Act deserves a failing grade,” he told Sebelius. “You need to fix this.”

Responding to Baucus, Sebelius pointedly noted that Republicans in Congress last year blocked funding for carrying out the health care law, and she had to resort to raiding other departmental funds that were legally available to her.

The administration is asking for $1.5 billion in next year’s budget, and Republicans don’t seem willing to grant that either.

“I don’t know what he’s looking at,” Sebelius told reporters following her out of the room after Baucus adjourned the hearing. “But we are on track to fully implement marketplaces in Jan. 2014, and to be open for open enrollment.”

That open-enrollment launch is only months away, Oct. 1. It’s when millions of middle-class consumers who don’t get coverage through their jobs will be able to start shopping for a private plan in the new marketplaces, or exchanges. They’ll also be able to find out if they qualify for tax credits that will lower their premiums. At the same time, low-income people will be steered to government programs, mainly an expanded version of Medicaid.

But half the states, most of them Republican-led, have refused to cooperate in setting up the infrastructure of Obama’s law. Others, like Montana, are politically divided. The overhaul law provided that the federal government would step in and run the new markets if a state failed to do so. Envisioned as a fallback, federal control now looks like it will be the norm in about half the country, straining the resources of the department Sebelius leads.

The IRS employees were indicted on charges that they illegally received more than $250,000 in benefits including unemployment insurance payments, food stamps, welfare, and housing vouchers, the U.S. attorney’s office in Memphis said in a news release.

Prosecutors say 13 of the IRS employees face federal charges of lying about being unemployed while applying for or recertifying their government benefits. They each face up to five years in prison if convicted of making false statements to receive the benefits.

Eleven others face state charges of theft of property over $1,000, a felony that can carry a sentence of probation up to 12 years in prison if they are convicted.

“While these IRS employees were supposed to be serving the public, they were instead brazenly stealing from law-abiding American taxpayers,” U.S. Attorney Edward Stanton said in a statement

Those charged range in ages from 28 to 64. They include residents of Memphis, Jackson, Tenn., and Southaven, Miss.

“The taxes that we pay are supposed to support our nation and assist individuals in need, not free-loaders who are gaming the system,” said Amy Weirich, the district attorney for Shelby County.

Prosecutors scheduled, then canceled, a news conference to announce the indictments. U.S. attorney’s office spokesman Rodney King said the cancellation was due to “unforeseen events,” without elaborating.

King would not say whether the cancellation was related to the investigation into two letters sent to President Barack Obama and a Mississippi senator that indicated they contained poisonous ricin.

The FBI says the letters were postmarked Memphis.

The president plans to unveil his budget Wednesday, but a senior administration official confirmed the key details in advance. Included in the plan, which would aim to reduce the deficit by $1.8 trillion over 10 years, is a provision to lower cost-of-living adjustments to Social Security, the benefit program for retirees. This would curb the growth in benefits.

“While this is not the president’s ideal deficit reduction plan, and there are particular proposals in this plan like the (Social Security change) that were key Republican requests,” the official said. “The president felt it was important to make it clear that the offer still stands.”

The administration is clear that it is offering changes to Social Security and Medicare — the two benefit programs most important to seniors — in order to convince Republicans to accept increased revenues. The official said the plan to be unveiled next week “isn’t a menu of options for them to choose from — it’s a cohesive package.”

The proposal, though, is sure to get hit from both sides. Republicans want the Social Security change but for years have resisted new tax revenue — Obama’s plan calls for additional tax revenue, including a proposal to place limits on tax-preferred retirement accounts for top earners. Obama has also called for limits on tax deductions by top earners, a proposal that could generate about $580 billion in revenue over 10 years.

But the president could face an even tougher time selling the Social Security change to liberal members of Congress.

Sen. Bernie Sanders, I-Vt., fired off a statement Thursday responding to what was then the rumor that Obama’s budget could include the change.

“Millions of working people, seniors, disabled veterans, those who have lost a loved one in combat, and women will be extremely disappointed if President Obama caves into the long standing Republican effort to cut Social Security and benefits for disabled veterans and their survivors through a so-called chained CPI,” Sanders said. “In 2008, candidate Barack Obama told the American people that he would not cut Social Security.  Having him go back on his word will only add to the rampant political cynicism that our country is experiencing today.”

Chained CPI is the Washington term for the revised inflation adjustment that would effectively curb annual increases in a broad swath of government programs, but would have its biggest impact on Social Security.

The inflation adjustment would reduce federal spending over 10 years by about $130 billion, according to past White House estimates. Because it also affects how tax brackets are adjusted, it would also generate about $100 in higher taxes and affect even middle income taxpayers.

Obama’s budget, to be released next week, comes after the Republican-controlled House and the Democratic-run Senate passed separate and markedly different budget proposals. House Republicans achieved long-term deficit reductions by targeting safety net programs; Democrats instead protected those programs and called for $1 trillion in tax increases.

Obama’s budget proposal includes features from an offer he made to House Speaker John Boehner during fiscal negotiations last year. Those talks ultimately failed but Congress did agree to increase tax rates on top earners.

The reductions in growth of benefit programs, which would affect veterans, the poor and the older Americans, is sure to anger many Democrats.

Labor groups and liberals have long been critical of Obama’s offer to Boehner for including such a plan.

Obama’s new plan would also replace the sequester with other spending cuts. But it will steer clear of major cuts to Medicaid, including tens of billions in reductions to the health care plan for the poor that the administration had proposed only last year.