Retirees received the good news in late October that those receiving average Social Security retirement benefits each month will see an inflation-adjusted increase of roughly $56 a month starting in January.
The bad news hit in November: Retirees will hand over another $17.90 a month as the standard monthly premium for Medicare Part B hits $202.90 a month for 2026.
And that's how an average $56 cost-of-living adjustment in monthly Social Security retirement benefits could end up at around $38 a month for many, but not all, people.
Many people have their Medicare Part B premium automatically deducted from the Social Security benefits each month, which means the bottom-line increase could be smaller than some would expect.
Sharp eyes spotted that the Centers For Medicare and Medicaid Services released information about Medicare Part B premiums for 2026 via a fact sheet online, not a news release on Friday, Nov. 14.
That's the second-highest Part B premium increase in program history in terms of dollars. The record increase was $21.60 a month set in 2022.
It could have been worse.
Earlier, the Medicare Trustees report had forecast that the 2026 Medicare Part B premium would rise from $185 in 2025 to $206.50 per month in 2026. That would have been an increase of $21.50.
Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment and certain other medical and health services not covered by Medicare Part A.
For some lower-income households receiving Social Security benefits, the $17.90 a month hike in the Medicare Part B premium exceeds the dollar amount of what they'll actually see as an increase in Social Security benefits each month in 2026.
The cost-of-living boost for Social Security beneficiaries is not a flat dollar amount. Instead, it is based on a percentage of what you receive in benefits each month. The next COLA hike will land at 2.8% in 2026.
The cost-of-living boost for Social Security beneficiaries will land at 2.8% in 2026, based on new data from a much anticipated but delayed September inflation report released Oct. 24. A 2.8% COLA would add up to $56 a month — or $672 a year — for retirees receiving an average benefit of around $2,008 a month for retired workers.
Some receive more in monthly benefits; others receive far less. As a result, some people cannot bank on seeing their Social Security benefits go up by $56 a month in January.
If you're getting $600 a month in Social Security benefits, for example, you'd only be looking at a COLA hike of $16.80 a month — which is less than the Medicare Part B premium hike set for 2026.
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"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," said Mary Johnson, an independent Social Security and Medicare policy analyst.
Story continuesWithout that hold harmless provision, she noted, the increase in Part B would swallow the entire COLA for someone receiving a very small monthly Social Security check. But she stressed this group would be protected from reductions to their Social Security benefit.
The hold harmless provision will mean that a small number of people will see little or no increase in their Part B premium — and their Social Security benefit checks will remain the same — because the amount of their cost-of-living adjustment isn’t large enough to cover the increase, as Social Security explained earlier online.
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, said Shannon Benton, executive director of the Senior Citizens League, which was established in 1992.
Individuals who have other automatic deductions, such as Medicare Advantage or Part D premiums, could see further reductions to Social Security payments that they receive.
Higher income households also can pay out much more for Medicare Part B premiums each month.
Since 2007, a beneficiary’s Part B monthly premium has been based on his or her income.
Social Security beneficiaries who are single with an adjusted gross income of more than $109,000 will pay more than $202.90 a month in 2026 for Medicare Part B benefits. The same is true for a married couple with an adjusted gross income that exceeds $218,000.
According to the Centers for Medicare and Medicaid Services, roughly 8% of people with Medicare Part B face income-related adjustments. The 2026 Part B premiums for high-income beneficiaries with full Part B coverage are outlined in detail on the latest fact sheet.
A beneficiary who files a joint tax return could pay $405.80 a month for full Part B coverage, for example, if the modified adjusted gross income on the return is greater than $274,000 and less than or equal to $342,000 a year.
Contact personal finance columnist Susan Tompor: [email protected]. Follow her on X @tompor.
This article originally appeared on Detroit Free Press: Medicare premium hike cuts into 2026 Social Security COLA
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