Big Medicare Part B jump slashes next year’s COLA — here’s how much seniors lose

In late October, retirees got good news, the average Social Security retirement benefit will rise by about $56 a month starting January 2026 due to cost-of-living adjustment (COLA). The bad news came in November, the standard Medicare Part B premium will rise to $202.90 a month in 2026, meaning retirees will pay $17.90 more each month.

As a result, the net increase for many retirees could shrink from $56 to around $38 a month, after the Medicare Part B premium is deducted, as per the report by USA Today. Many retirees have Medicare Part B premiums automatically taken from their Social Security checks, so the actual increase they see can be smaller than expected.

Medicare Part B premium history

The Centers for Medicare and Medicaid Services (CMS) released the 2026 Part B premium info online, via a fact sheet on Nov. 14, rather than a news release. The $17.90 increase is the second-highest dollar jump in Medicare Part B history, with the record being $21.60 a month in 2022, as stated in the report by USA Today.


At first, Medicare said the Part B monthly cost in 2026 would be $206.50, which is $21.50 more than now. This would have been a bigger increase. Medicare Part B pays for doctor visits, hospital care outside the hospital, some home health care, medical equipment, and other services not in Part A. For some retirees with low income, the $17.90 increase could be more than the Social Security raise they get in 2026.

The Social Security COLA is not a flat amount; it’s based on a percentage of monthly benefits. The 2026 COLA will be 2.8% , as stated by USA Today. A 2.8% COLA adds about $56 a month (or $672 a year) for retirees receiving the average benefit of $2,008 a month.

Some retirees receive more or less than the average, so not everyone will see a $56 increase. Example, a retiree getting $600 a month in Social Security would see a COLA of $16.80, which is less than the Part B premium hike.

Hold harmless protection

Mary Johnson, a Social Security and Medicare policy analyst, explained, "A Part B increase of this size would trigger the hold harmless provision for Social Security recipients with a Social Security benefit of $640 or less" , as mentioned in the report by USA Today.

Without the hold harmless provision, a small Social Security check could be fully eaten up by the Part B increase, but this provision protects them from losing benefits. Under the hold harmless rule, the Part B premium increase is capped at the amount of a retiree’s COLA.

Shannon Benton, executive director of the Senior Citizens League, said, "Under the hold harmless provision that applies to some beneficiaries, the increase in Medicare Part B premiums is limited to the dollar amount of a recipient's COLA", as stated by USA Today.

Retirees with other automatic deductions, like Medicare Advantage or Part D, may see even lower Social Security payments. High-income retirees pay more for Medicare Part B. Since 2007, premiums are based on income, as stated by the reports.Single retirees with an adjusted gross income above $109,000 and married couples above $218,000 will pay more than $202.90 per month.

Roughly 8% of Medicare Part B recipients face income-related adjustments. Example, a couple filing a joint tax return with income between $274,000 and $342,000 could pay $405.80 a month for full Part B coverage in 2026.

FAQs

Q1. How much will Medicare Part B cost in 2026?

The standard Medicare Part B premium will be $202.90 a month in 2026, with higher-income retirees paying more.

Q2. How does the 2026 Social Security COLA affect retirees?

The 2026 COLA is 2.8%, adding about $56 a month for average retirees, but Part B premium increases may reduce the net gain.