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Maskot \/ Getty Images<\/p>\n
For retirees, rising Medicare costs can quickly erode the benefit of annual Social Security increases. <\/p>\n
Social Security recipients will see a 2.8% COLA increase in 2026, but some of that boost is to be offset by rising Medicare Part B premiums<\/a>.<\/p>\n<\/li>\n The monthly Medicare Part B premium will rise almost 10% to $202.90 per month, cutting into the 2026 COLA announced last month.<\/p>\n<\/li>\n<\/ul>\n That extra cash landing in your Social Security check next year? Don’t spend it just yet.<\/p>\n<\/p>\n Medicare just announced its 2026 premiums, and they’re about to take a bite out of your cost-of-living raise<\/a>. For the average retiree, what looked like a $57 monthly boost will shrink to just $39 after accounting for changes in the standard monthly premium.<\/p>\n While retirees are set to receive a 2.8% boost from Social Security’s cost-of-living adjustment (COLA)<\/a>, the standard Medicare Part B premium is going up to $202.90,\u00a0up $17.90 from 2025.<\/p>\n Since Medicare Part B premiums are automatically deducted from your Social Security payments, the premium spike directly cuts into your COLA increase. Medicare Part B premiums cover essentials like doctor visits, outpatient care, and certain hospital services.<\/p>\n The average monthly Social Security benefit is $2,015. After the 2.8% COLA, that should jump by $57 to $2,072. But once Medicare takes its $17.90 cut, you’re left with just $39.10 more per month.<\/p>\n However, some won’t have to pay the full premium increase: If the premium increase is more than your COLA for 2026, your monthly benefits will stay the same. This is due to a rule known as the “hold harmless provision.”<\/p>\n For example, if your monthly benefit is less than $640, your COLA would be less than $17.90 (the amount of the premium increase). So, your benefit won’t drop next year\u2014it just won’t grow either.<\/p>\n Medicare Part B premiums are set to increase 9.7% in 2026. Typically, most people who pay for Medicare Part B will have to pay the full amount of the increase in 2026, but if your benefit and COLA are small enough, you might not have to.<\/p>\n So why are Medicare Part B premiums increasing next year?<\/p>\n “The increase in the 2026 Part B standard premium and deductible is mainly due to projected price changes and assumed utilization increases that are consistent with historical experience,” the Centers for Medicare & Medicaid Services said in its press release.<\/p>\n Translation: Health care costs keep rising<\/a>, and more people are using Medicare services.<\/p>\n <\/p>\n