Medicare Part B Premium Hike Wipes Out Most of Social Security COLA Increase for 2026

Medicare Part B premium: Retirees received encouraging news in late October when it was announced that the average Social Security check will increase by approximately $56 a month starting January 2026, thanks to the cost-of-living adjustment. However, the relief was short-lived. Just weeks later, the Centres for Medicare and Medicaid Services confirmed that the standard monthly Medicare Part B premium will rise by $17.90, bringing the monthly cost to $202.90 next year.

For millions of retirees who have Medicare premiums deducted directly from their Social Security checks, this means the real increase in benefits may end up being closer to $38 a month or even less. In some lower-income cases, the Part B premium increase may exceed the COLA boost entirely.

The upcoming increase represents the second-largest dollar-based premium hike in Medicare Part B history, trailing only the $21.60 increase in 2022. Even then, officials noted that it could have been higher; earlier projections estimated an increase of $21.50 for 2026.

Medicare Part B covers a wide range of medical services, including physician visits, outpatient care, durable medical equipment, and specific health services not covered by Part A. The COLA adjustment, calculated as 2.8%, applies proportionally to the benefits each recipient receives. With the current average Social Security benefit at about $2,008 a month, the increase comes to $56. But retirees receiving smaller monthly checks will see significantly less. For example, a beneficiary receiving $600 a month would only receive a $16.80 bump not enough to cover the premium hike.

Fortunately, the “hold harmless” provision protects some low-income beneficiaries from seeing their Social Security checks decrease. This safeguard limits the increase in Medicare premiums to the amount of the COLA for those who qualify, ensuring that their net income does not drop.

Higher-income retirees will continue to pay more. Since 2007, Medicare Part B premiums have been income-based. Individuals earning more than $109,000, or couples earning more than $218,000, will pay more than the standard $202.90 monthly premium in 2026. According to CMS, roughly 8% of Medicare beneficiaries fall into this income-adjusted category. In some cases, married beneficiaries with higher earnings could face premiums as steep as $405.80 per month.

With many retirees already navigating inflation and rising medical costs, the 2026 Medicare premium increase is expected to place additional pressure on fixed-income households particularly those who rely heavily on Social Security.

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