The 2026 COLA increase sounds great… until you see the Medicare premium payments

The 2026 cost-of-living adjustment (COLA) is currently projected at 2.8%, according to independent analysts. That would mean an average increase of just over $52 a month for beneficiaries, based on August’s average Social Security payment of $1,864. But experts warn that Medicare costs are poised to eat up most, if not all, of that extra cash.

How will Medicare impact my COLA payments?

The Medicare Trustees have estimated the standard Part B premium will jump from $185 to $206.50 in 2026, a $21.50 increase. “That’s very close to the record for the largest premium hike in Medicare history,” said Mary Johnson, via USA Today, a Social Security and Medicare policy analyst.

Prescription drug costs are also set to rise, with standalone Part D plan premiums allowed to climb as much as $50 per month, up from $35 in 2025, according to nonprofit researcher KFF.

Seniors in poverty rising

For many seniors already stretched thin, the calculations are discouraging. “The Medicare premium will likely eat up the little extra money they receive,” said Ramsey Alwin, head of the National Council on Aging. Recent Census Bureau data shows poverty among Americans 65 and older rose to 15% in 2024, the only age group to see an increase.

The Social Security Administration will announce the official COLA in October, but for millions of retirees, the raise may feel more symbolic than substantial.

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all.

Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.