Social Security beneficiaries will see a 2.8% cost-of-living adjustment (COLA) in 2026, translating to an average increase of about $56 per month. However, this raise will be significantly offset by a nearly 10% increase in Medicare Part B premiums, which will rise by $17.90 to $202.90 monthly starting in 2026. Since Medicare Part B premiums are typically deducted directly from Social Security payments, most beneficiaries will see a reduced net increase.
How the Medicare Increase Affects Social Security
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The $17.90 rise in Medicare Part B premiums will reduce the modest COLA boost by roughly one-third, effectively shrinking the real income gain beneficiaries might have expected.
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For a typical retiree receiving the average Social Security benefit of around $2,015, the 2.8% COLA adds $56, but after the premium increase deduction, the net raise is only about $39 per month.
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Beneficiaries with lower Social Security income, roughly below $640 per month, may be protected by the “hold harmless” provision, which prevents their net benefits from decreasing even if the premium increase exceeds their benefit increase.
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In addition to the premium hike, the annual Medicare Part B deductible will increase by $26, from $257 in 2025 to $283 in 2026, further raising out-of-pocket healthcare costs.
What This Means for Beneficiaries
While the COLA increase provides some relief against inflation, rising Medicare costs will eat into these gains, resulting in smaller net increases or in some cases stagnation in total monthly income. Beneficiaries should also anticipate rising costs for prescription drugs, as some Medicare Part D plans may increase premiums by up to $50.
Summary Table
| Item | 2025 Amount | 2026 Amount | Change |
|---|---|---|---|
| Social Security COLA Increase | N/A | 2.8% (~$56) | – |
| Average Social Security Benefit | $2,015 | ~$2,071 | +$56 |
| Medicare Part B Premium | $185.00 | $202.90 | +$17.90 (9.7%) |
| Medicare Part B Deductible | $257 | $283 | +$26 |
| Net Increase for Typical Retiree | N/A | ~$39 | After premium offset |
FAQs
Q1: How much will Social Security benefits increase in 2026?
A: Benefits will increase by 2.8%, about $56 on average per month before Medicare premium deductions.
Q2: How much will Medicare Part B premiums increase?
A: Premiums will rise by $17.90 to $202.90 per month in 2026.
Q3: Will beneficiaries still see a raise after the Medicare increase?
A: Yes, but the premium hike will reduce the net COLA increase by about one-third for most beneficiaries.
In summary, while Social Security benefits will rise in 2026 to help keep up with inflation, the concurrent increase in Medicare premiums will offset much of this gain, impacting retirees’ net monthly income. Beneficiaries should plan accordingly for higher healthcare expenses alongside their adjusted Social Security payments.
