It’s official: Medicare Part B premiums will eat into next year’s social security increase

The 2026 cost-of-living adjustment (COLA) for Social Security benefits has been set at 2.8%, a raise that will add roughly 56 dollars a month to the average retiree’s check. But once again, rising Medicare costs are poised to erode much of that gain.

How will Medicare impact my 2026 COLA payments?

The standard Medicare Part B premium will rise to 202 dollars and 90 cents per month in 2026, according to the Centers for Medicare and Medicaid Services. That is a jump of $17 and 90 cents from the current 185-dollar rate, an increase of 9.7%. It is the second-largest dollar increase on record; the biggest was the 21 dollar and 60 cent jump in 2022.

For many retirees, the higher premium “may feel like a continuation in relentless cost increases,” said Mary Johnson, an independent Medicare and Social Security analyst. Because Part B premiums are deducted directly from Social Security payments, the increase will reduce how much of the 2026 COLA beneficiaries actually see.

A hold harmless provision prevents Social Security checks from shrinking due to Part B premium hikes, but that protection does not apply to other deductions. Premiums for Medicare Advantage plans and standalone Part D drug coverage can still reduce a retiree’s net monthly benefit.

The standard 2026 Part B premium applies to individuals with modified adjusted gross income of $109,000 or less and to married couples filing jointly with income of $218,000 or less. Roughly 8% of beneficiaries pay additional income-related surcharges. The annual Part B deductible will also increase, rising to $283 next year from $257.

Seniors in poverty rising

Advocates warn that the combination of modest benefit growth and steady medical inflation continues to squeeze seniors on fixed incomes. Recent Census data showed poverty among Americans 65 and older rising to 15%, the only age group to see an increase.

The Social Security Administration has finalized the COLA, but for many retirees already stretched thin, the 2026 increase may feel more symbolic than real once Medicare costs are factored in.

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