2026 Medicare Part B Increase to Eat Up Much of Social Security COLA Raise
As expected, increases to Medicare costs will indeed eat up much of the Social Security cost-of-living adjustment (COLA) that seniors will receive next year.
On Nov. 14, the Centers for Medicare & Medicaid Services (CMS) announced increases in premiums, deductibles, and copayments for Medicare Parts A and B for 2026. The new amounts take effect on Jan. 1, 2026.
The standard monthly premium for Medicare Part B, which covers outpatient care, doctors’ services, durable medical equipment and preventive service, will be $202.90 in 2026, up $17.90, or nearly 9.7%, from $185.00 in 2025. The annual deductible for all Medicare Part B beneficiaries will be $283 in 2026, an increase of $26 from the annual deductible of $257 in 2025.
While the $17.90 increase is smaller than the $21.50 increase the Medicare Trustees had forecast earlier, it’s still the second-largest increase in program history behind 2022’s $21.60 increase and is almost 3.5 times the recently announced 2.8% Social Security raise for 2026.
The COLA for 2026 would add about $56 a month to the average Social Security check, but because Part B premiums are automatically deducted each month, about one-third of the COLA increase will be eroded.
“Medicare Part B premiums consistently overtaking Social Security COLAs degrades American seniors’ quality of life over time. Our members constantly tell us that they feel like their benefits aren’t keeping up, and this is a great example of that experience in action,” said Shannon Benton, Executive Director of The Senior Citizens League, in a statement Monday.
TSCL points out this is the third straight year that the Medicare Part B standard premium has risen faster than Social Security’s COLA. This year’s premium increase of 9.7% was more than three times the 2026 COLA of 2.8%. Meanwhile, the 2025 premium increase of 5.8% was more than twice the 2025 COLA of 2.5%, and 2024’s premium increase of 6% was nearly double that of the 2024 COLA of 3.2%.
“Especially since the pandemic, rising Part B premiums have been ruining seniors’ finances. The data shows that many older Americans already enjoy a lower standard of living than younger citizens, making a fulfilling retirement feel like a dream that’s further and further away,” Benton added.
“It is imperative for Congress to act to stop this trend of Medicare costs, and healthcare costs in general, rising faster than inflation in the broader economy,” Benton said. “More preventative care for seniors, better dental and vision and hearing coverage, and more power for Medicare to negotiate prices with pharmaceutical companies and other suppliers are all examples of common-sense policy to reverse this trend over time.”
In 2025, the standard monthly premium for Medicare Part B enrollees increased from $174.70 in 2024 to $185.00 for 2025, an increase of $10.30. The annual deductible for all Medicare Part B beneficiaries increased $17 from $240 in 2024 to $257 in 2025.
CMS noted in its Nov. 14 Fact Sheet that 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.
“If the Trump Administration had not taken action to address unprecedented spending on skin substitutes, the Part B premium increase would have been about $11 more a month. However, due to changes finalized in the 2026 Physician Fee Schedule Final Rule, spending on skin substitutes is expected to drop by 90% without affecting patient care.”
The CMS Fact Sheet added that since 2007, a beneficiary’s Part B monthly premium has been based on income. That means beneficiaries with income higher than $109,000 will face even higher monthly costs, impacting roughly 8% of people with Medicare Part B.
For beneficiaries with lower incomes, independent Social Security and Medicare policy analyst Mary Johnson noted that a Part B increase of this size would trigger a “hold harmless” provision for Social Security recipients with a Social Security benefit of $640 or less. That provision limits the dollar increase in the premium to the dollar increase in an individual’s Social Security benefit. About four million low-income Social Security beneficiaries will see their Part B increase capped because of the hold harmless provision.
SEE ALSO:
• It’s Official: Social Security COLA Set at 2.8%
• Medicare Premiums Growing Twice as Fast as Social Security COLA
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
