Patrick
Retirees are preparing for higher expenses next year—not only from rising Social Security costs but also from an increase in Medicare Part B premiums.
The upcoming rate change creates a clear divide among beneficiaries, separating those protected under the “Hold Harmless” rule from the millions who will be required to pay the full amount.
Medicare Premiums Increase Nearly 10% in 2026
Beginning in 2026, the monthly Medicare Part B premium will rise to $202.90, up from $185 in 2025. This jump—almost a 10% increase—poses financial challenges for retirees who depend on fixed monthly incomes, making everyday essentials harder to manage.
Understanding the “Hold Harmless” Rule
How the Rule Protects Certain Beneficiaries
The Hold Harmless rule is designed to shield specific Social Security recipients whose annual cost-of-living adjustment (COLA) is not large enough to cover the increased Medicare premium.
In simple terms, if your Social Security benefit cannot fully absorb the new Part B premium, the government is not allowed to reduce your monthly check.
Instead, your Medicare premium is lowered or eliminated to prevent your Social Security payout from decreasing.
Only About 1 Million Retirees Qualify
Because the 2026 COLA is relatively small, only around 1 million retirees will qualify for this protection. These beneficiaries will see little to no impact on their monthly Social Security payments.
Most Beneficiaries Will Pay the Full Increase
While the Hold Harmless rule offers relief to a fraction of retirees, millions of others are not protected. These include:
- Individuals newly enrolled in Medicare
- Those not receiving Social Security benefits
- People with higher incomes
- Beneficiaries subject to IRMAA surcharges
- Anyone whose COLA can fully cover the premium increase
The majority of Medicare users will pay the full $17.90 monthly increase in 2026. Though the amount seems modest, it totals more than $215 per year, adding to rising costs for housing, groceries, transportation, and medical care.
Part B Deductible Also Rising in 2026
Adding more pressure, the Medicare Part B deductible will increase from $257 in 2025 to $283 in 2026. That means retirees must pay $26 more out of pocket before their Medicare coverage begins.
For seniors managing chronic conditions or frequent medical needs, even small increases can significantly strain their budgets.
Why Medicare Costs Continue to Climb
Several factors are driving these higher premiums and deductibles:
- Greater use of outpatient healthcare services
- Rising healthcare and prescription drug costs
- Increased Medicare reimbursement to doctors and providers
- Overall growing expenses that push Medicare beneficiaries to pay more
What Retirees Should Expect Moving Forward
Roughly 1 million retirees will benefit from the Hold Harmless rule, ensuring their Social Security checks remain unchanged.
However, the vast majority will encounter higher monthly premiums, increased deductibles, and COLA gains that may be partially erased by these added Medicare expenses.
How Retirees Can Prepare for 2026
Retirees can take proactive steps to manage the upcoming increases:
- Review your Medicare coverage to eliminate unnecessary expenses
- Set aside funds for the higher 2026 deductible
- Understand your 2026 COLA and adjust your budget accordingly
- Stay updated with reliable, verified information
Remaining informed and planning ahead can help seniors better navigate next year’s cost increases.
The 2026 Medicare premium adjustments highlight growing financial pressures for retirees. While the Hold Harmless rule will protect about 1 million beneficiaries, most seniors will face the full cost increases—including a higher deductible and a nearly 10% rise in monthly premiums.
Careful budgeting and staying informed will be essential as Medicare-related expenses continue to rise.
FAQs
Who qualifies for the Hold Harmless rule in 2026?
Only retirees whose COLA increase is too small to cover the higher Medicare premium—roughly 1 million people—will be protected.
What will the Medicare Part B premium be in 2026?
The monthly premium will be $202.90, up from $185 in 2025.
Why are Medicare premiums and deductibles increasing?
Higher healthcare spending, prescription drug expenses, and increased provider payments all contribute to rising Medicare costs.