Medicare Part B Premiums Jumped Nearly 10 Percent. Social Security's Raise Is Not Keeping Up.

The standard Medicare Part B premium jumped from $185 to $202.90 per month in January 2026 - a 9.7 percent increase. Social Security recipients received a 2.8 percent cost-of-living adjustment. The math is not in their favor.

What You Should Know

The 2.8 percent COLA adds approximately $56 per month to the average Social Security retirement benefit. But because Medicare Part B premiums are automatically deducted from Social Security payments, the $17.90 monthly premium increase consumed nearly a third of that raise - leaving most retirees with only about two-thirds of their COLA to cover everything else.

This is the third consecutive year in which the percentage increase in Medicare Part B premiums has outpaced the Social Security COLA. Roughly 70 million Americans receive Social Security benefits; most are enrolled in Medicare Part B.

The Money Trail

The out-of-pocket pressure is building on multiple fronts. The Medicare Part B deductible rose to $283 in 2026, up from $257. The Part D out-of-pocket cap rose to $2,100. For beneficiaries on fixed incomes, each increase compounds the others.

Looking ahead, the Medicare Hospital Insurance Trust Fund is projected to be depleted by 2033, at which point automatic payment reductions to hospitals would begin. Social Security’s retirement trust fund faces a similar 2033-2034 depletion timeline, at which point benefits could automatically be cut by approximately 19 percent - unless Congress acts. No legislation addressing either shortfall is currently moving.

The Receipts

AARP confirmed the premium and COLA figures. CMS confirmed the $202.90 Part B premium on November 14, 2025. SSA announced the 2.8 percent COLA on October 24, 2025. The depletion timeline comes from the 2025 Medicare and Social Security Trustees Reports.

What Happens Next

The 15 drugs selected in the second round of Medicare drug price negotiations will see lower prices take effect in 2027, providing some relief for beneficiaries on those specific medications. The broader premium and trust fund trajectory will continue to pressure beneficiaries unless Congress addresses the structural funding gaps.

References: AARP | Finger Lakes 1