Retirees were greeted with encouraging news in late October when the average Social Security retirement benefit was set to rise by about $56 per month beginning in January.
This adjustment reflects the annual inflation-based cost-of-living increase (COLA).
However, that optimism was short-lived. By mid-November, it became clear that the standard Medicare Part B premium will jump by $17.90 per month, bringing the 2026 monthly cost to $202.90.
This means many retirees will see their net Social Security increase reduced to roughly $38 per month after the premium deduction.
Why the Net Increase Will Be Smaller
Most retirees have their Medicare Part B premium automatically deducted from their Social Security benefits. As a result, the final increase in their monthly checks will be significantly lower than the headline COLA figure.
Observers noted that the Centers for Medicare & Medicaid Services (CMS) quietly published the premium details on a fact sheet online rather than issuing a broader public announcement.
This $17.90 premium jump marks the second-largest increase in the program’s history, surpassed only by the $21.60 hike in 2022.
Although the increase is substantial, it is still smaller than earlier projections. A previous Medicare Trustees report estimated a rise from $185 (2025 premium) to $206.50, which would have been a $21.50 increase.
What Medicare Part B Covers
Medicare Part B provides coverage for:
- Doctor visits
- Outpatient hospital care
- Home health services
- Durable medical equipment
- Other medical services not covered under Part A
When COLA Isn’t Enough to Offset the Medicare Hike
Not everyone will benefit evenly from the COLA increase. The 2.8% cost-of-living adjustment varies depending on a person’s Social Security benefit amount.
- A retiree receiving the average $2,008/month benefit will get a $56 monthly increase, totaling $672 annually.
- Those receiving lower monthly benefits will see much smaller dollar increases.
For example, someone collecting $600 per month will receive only $16.80 more per month, which is less than the Part B premium hike, meaning their Social Security check will not rise at all without special protection.
How the “Hold Harmless” Rule Protects Lower-Income Beneficiaries
The hold harmless provision ensures that a beneficiary’s Social Security check cannot decrease because of a rise in Medicare Part B premiums.
According to analysts:
- Anyone receiving $640 or less in monthly benefits will likely trigger the hold harmless protection.
- This group will see little or no increase in their Part B premiums for 2026.
- Their benefits will remain stable because their COLA is not large enough to absorb the premium increase.
However, those with additional deductions—such as Medicare Advantage or Part D premiums—may still see reductions in their final Social Security payment.
Higher-Income Retirees Will Pay Much More
Since 2007, Medicare Part B premiums have been tied to income levels. Higher-earning households face income-related monthly adjustments.
In 2026:
- Single beneficiaries with adjusted gross incomes over $109,000 will pay more than $202.90.
- Married couples earning above $218,000 will also pay higher premiums.
CMS reports that around 8% of Medicare Part B enrollees fall into this high-income category.
For example, a married couple filing jointly with a modified adjusted gross income between $274,000 and $342,000 could pay $405.80 per month for full Part B coverage.
The upcoming 2.8% Social Security COLA offers much-needed relief for retirees, but the benefit will be partly overshadowed by a significant jump in Medicare Part B premiums.
While some retirees will still see a modest increase in their monthly checks, others—especially those with lower Social Security benefits—may find that the hold harmless provision prevents them from losing ground.
Higher-income households, meanwhile, must prepare for even steeper Part B payments in 2026.
Understanding these changes now allows retirees to better anticipate their budget needs in the year ahead.
FAQs
Why is the Medicare Part B premium increasing in 2026?
The rise reflects growing healthcare costs and updated program expenses covered under Medicare, including outpatient and physician services.
Will all retirees see the same Social Security increase?
No. The COLA is percentage-based, so the exact dollar increase depends on how much a person currently receives in monthly benefits.
What happens if my COLA is too small to cover the higher Part B premium?
The hold harmless rule ensures your Social Security check will not decrease. Your Part B premium will be limited to the amount of your COLA increase.