Hailey
Many seniors look forward to the yearly Social Security COLA increase, hoping it will help them manage daily expenses. But in 2026, a large share of this increase will be taken away by higher Medicare Part B premiums.
Even though benefits are going up, rising health care costs will still make it harder for retirees to feel any real growth in their monthly income.
Understanding the 2026 Social Security COLA Increase
The Social Security Administration (SSA) has confirmed a 2.8% COLA for 2026. This increase is meant to help retirees keep up with inflation.
- Average monthly raise for retirees: about $56
- Purpose of COLA: To balance rising costs of essential items like food, housing, medicine, and utilities.
Even though this sounds helpful, many seniors will not receive the full benefit because Medicare costs are climbing faster than the COLA itself.
How Medicare Part B Will Affect Your 2026 Payments
The biggest concern for retirees in 2026 is the rise in Medicare Part B premiums, which are taken directly from Social Security checks. That means a higher premium automatically reduces the money seniors receive every month.
New Medicare Part B Premium (2026)
According to the Centers for Medicare & Medicaid Services (CMS), the standard Part B premium will increase from $185.00 to $202.90 per month.
This is an increase of:
- $17.90
- 9.7% rise, one of the largest increases ever recorded
- Second-biggest increase after the 2022 jump of $21.60
2026 Medicare Part B Cost Changes Table
| Medicare Cost (2026) | 2025 Amount | 2026 Amount | Increase |
|---|---|---|---|
| Part B Premium | $185.00 | $202.90 | +$17.90 |
| Part B Deductible | $257 | $283 | +$26 |
Who Pays the Standard Medicare Part B Premium?
The standard premium applies to:
- Individuals with income of $109,000 or less
- Married couples filing jointly with income of $218,000 or less
About 8% of Medicare beneficiaries will pay more because of income-related surcharges.
Why Retirees May Not Feel the COLA Increase
Medicare Part B premiums come directly out of Social Security payments, which lowers the net benefit seniors receive.
There is a “hold harmless” rule, which stops Social Security checks from shrinking when the premium increases. However:
- The rule does NOT protect seniors from other deductions
- Medicare Advantage plans
- Part D prescription drug coverage
These additional costs can further reduce take-home Social Security benefits.
Growing Concerns for Seniors on Fixed Incomes
Advocates warn that older Americans are facing increasing financial stress.
Recent Census data shows:
- Poverty rate for adults 65+ has risen to 15%
- Seniors are the only age group where poverty levels increased recently
- Rising healthcare costs are making basic living harder for elderly households
Even though the 2.8% COLA is official, many seniors say it feels too small compared to the increasing price of medicine, doctor visits, and everyday essentials.
For many retirees, the 2026 COLA may look good on paper but may not offer real financial relief once Medicare deductions are applied.
The 2026 Social Security COLA gives retirees a small boost, but most seniors will lose a large part of that increase because of rising Medicare Part B premiums and higher deductibles.
Health care inflation continues to grow faster than Social Security benefits, putting more pressure on seniors living on fixed incomes. While the COLA is meant to help seniors stay ahead of costs, many will still struggle to feel the benefits once Medicare takes its share.
This ongoing challenge highlights the need for long-term solutions to protect the financial stability of older Americans.
FAQs
How much is the 2026 Social Security COLA increase?
The COLA for 2026 is 2.8%, which adds about $56 per month to the average retiree’s Social Security check.
What will be the 2026 Medicare Part B premium?
The standard Part B premium will be $202.90 per month, which is an increase of $17.90 from 2025.
Will the Medicare increase reduce my Social Security payment?
Yes. Since Medicare Part B premiums are deducted from Social Security checks, your net monthly payment may be lower than expected.