Medicare 2026 Premiums Jump Nearly 10%: How Much of Your 2.8% Social Security COLA Will You Actually Keep?

As of today, November 24, 2025, the picture for retirees in 2026 is getting clearer — and more expensive.

The Centers for Medicare & Medicaid Services (CMS) has confirmed that standard Medicare Part B premiums will rise nearly 10% next year, from $185.00 in 2025 to $202.90 in 2026, while the annual deductible will climb from $257 to $283. ^[1]

At the same time, the Social Security Administration has finalized a 2.8% cost-of-living adjustment (COLA) for 2026, lifting the average monthly retirement benefit from $2,015 to about $2,071 — a gain of roughly $56. ^[2]

Put together, multiple analyses estimate that about a third of that raise will be eaten up by the higher Part B premium, leaving many retirees with a net increase of only around $38–$40 a month in their 2026 checks. ^[3]

This tension between rising Medicare costs and modest Social Security increases is the central theme running through coverage this week from outlets including The New York Times, CNN, USA TODAY and a wave of financial and policy sites.

Key 2026 Medicare & Social Security Numbers at a Glance

Medicare Part B (doctor and outpatient coverage) ^[4]

Standard monthly premium 2025: $185.00
Standard monthly premium 2026:$202.90
Dollar increase: $17.90
Percent increase: about 9.7%
Annual Part B deductible 2025: $257
Annual Part B deductible 2026:$283 (up $26, just over 10%)

Medicare Part A (hospital coverage) ^[5]

Inpatient hospital deductible 2025: $1,676
Inpatient hospital deductible 2026:$1,736 (up $60)
Daily coinsurance for longer hospital and skilled nursing facility stays also rises.

Most beneficiaries still pay no Part A premium, but those without enough work credits could pay up to $565/month for Part A in 2026, up from $510 in 2025. ^[6]

Social Security COLA for 2026

COLA 2025: 2.5%
COLA 2026:2.8% ^[7]
Average retired worker benefit:
- Before COLA (2025): $2,015
- After COLA (Jan. 2026): ~$2,071 (about +$56/month) ^[8]

After subtracting the $17.90 Part B premium increase, many typical retirees will see a net gain of about $38 per month, according to estimates from MarketWatch, Barron’s and other financial outlets. ^[9]

Why Are Medicare Premiums Jumping So Much for 2026?

According to CMS and independent analysts, several forces are pushing Medicare costs higher: ^[10]

Higher medical prices and utilization
- Outpatient visits, diagnostic testing, and physician-administered drugs keep getting more expensive.
- Medicare Part B premiums are designed by law to cover about 25% of projected Part B spending, so when spending rises, premiums follow.
Rising costs in Medicare Advantage (MA)
- KFF and KFF Health News note that running Medicare Advantage — private plans that deliver Medicare benefits — is contributing to the premium increase, as MA payments draw on the same Part B funding stream. ^[11]
Drug and device spending, including “skin substitutes”
- CMS and KFF highlight that spending on certain wound-care products (“skin substitutes”) ballooned from hundreds of millions to billions in just a few years. ^[12]
- The Trump administration’s 2026 Physician Fee Schedule includes cuts to what Medicare pays for these products, which CMS says reduced the premium increase by about $11 per month compared with what it otherwise would have been.
General inflation and aging population
- More people are aging into Medicare, and they tend to use more services, particularly outpatient care and drugs — both in traditional Medicare and Medicare Advantage.

In short, even though the announced premium is slightly lower than earlier projections, it’s still one of the largest dollar increases in program history, and it arrives in a year when many seniors already feel squeezed by housing, food and long‑term care costs. ^[13]

How the 2026 Medicare Hike Collides With the 2.8% Social Security COLA

The Social Security COLA is supposed to help retirees keep up with inflation. But because Medicare Part B premiums are typically deducted directly from Social Security checks, the raise is partially clawed back before it ever hits your bank account. ^[14]

What happens to an “average” retiree?

Using SSA’s own averages: ^[15]

2025 average monthly benefit: $2,015
2.8% COLA for 2026: ≈ +$56 → new gross benefit ≈ $2,071
Part B premium increase: +$17.90 (from $185 to $202.90)

That means many retirees will see net benefit growth of around $38 per month — not nothing, but considerably less than the headline 2.8% suggests.

Some analyses estimate that roughly one‑third of the COLA is effectively erased by the Part B increase. ^[16]

The “hold harmless” rule: who is protected?

There is some protection for the lowest-benefit retirees:

Under the “hold harmless” provision, Social Security checks cannot go down just because the Part B premium rises.
If your COLA is too small to cover the full Part B increase, your premium is reduced or capped so your net benefit doesn’t fall. ^[17]

Analysts estimate that this year:

Beneficiaries with monthly Social Security benefits of about $640 or less will see their Part B increase limited or wiped out by hold harmless rules. ^[18]
Roughly 4 million low‑income beneficiaries may fall into this protected group. ^[19]

Everyone else — including new enrollees, those not yet drawing Social Security, and people subject to income-related surcharges — will pay the full $202.90 (or more) per month. ^[20]

Who Pays What? 2026 Medicare Premiums by Income

For most people, the standard Part B premium of $202.90 will apply in 2026. That covers individuals with 2024 modified adjusted gross income (MAGI) up to $109,000 and couples filing jointly up to $218,000. ^[21]

Above those income thresholds, the Income‑Related Monthly Adjustment Amount (IRMAA) adds surcharges to Part B and Part D premiums:

Approximate 2026 Part B monthly premiums (full coverage) by income band: ^[22]

Up to $109,000 single / $218,000 joint: $202.90
Next band: about $284.10
Middle bands: step up through the $300s and $400s
Top band (≥ $500,000 single / ≥ $750,000 joint):$689.90 per month

For Part D (prescription coverage), 2026 IRMAA surcharges range from about $14.50 to $91 per month, on top of whatever your chosen drug plan charges. ^[23]

Part A, Part D and Medicare Advantage: Other 2026 Changes You Should Know

While Part B is getting the most attention, other parts of Medicare are also shifting.

Part A (Hospital Insurance) ^[24]

Inpatient hospital deductible: $1,736 per benefit period in 2026 (up $60)
Coinsurance rises for:
- Hospital days 61–90
- “Lifetime reserve” days
- Skilled nursing facility days 21–100 (to $217/day)

Most people still pay no Part A premium, thanks to having at least 40 quarters of Medicare‑covered work. Those who do pay may see premiums up to $565/month. ^[25]

Part D (Prescription Drug Plans) and the New Payment Plan

According to Medicare resources and retirement-planning sites: ^[26]

Average Part D premium 2026: around $34.50/month
Maximum Part D deductible:$615
New annual out-of-pocket cap: about $2,100 for covered drugs
2026 also brings the Medicare Prescription Payment Plan, letting enrollees spread large Part D out-of-pocket costs in monthly installments instead of paying all at once.

Medicare Advantage (Part C)

For 2026, Medicare Advantage plans show a mixed picture: ^[27]

Average MA premium: drops to roughly $14/month
Out-of-pocket maximums tighten slightly (around $9,250 in‑network, $13,900 out‑of‑network).
However, some insurers are trimming benefit extras or narrowing networks, making it essential to review your Annual Notice of Change.

What Today’s Coverage (Nov. 24, 2025) Is Saying

News and analysis published today and over the weekend paint a consistent picture:

“Nearly 10% increase” headlines dominate coverage, emphasizing how unusual it is for Part B premiums to jump past the $200 mark. ^[28]
Multiple outlets warn that the premium hike will “erase” or “slice away” much of the 2.8% Social Security COLA, especially for middle‑income retirees who don’t qualify for special protections or subsidies. ^[29]
Business and investing sites highlight the strain on fixed‑income retirement budgets and the need to revisit withdrawal strategies, long‑term care planning, and portfolio risk. ^[30]
Policy‑oriented organizations like KFF and Medicare Rights stress that millions already spend 10% or more of their income just on Part B premiums, even before deductibles, drugs, and long‑term care. ^[31]

In short: today’s news isn’t announcing new numbers — those came from CMS and SSA earlier this month — but it is sharpening the focus on what those numbers mean for real households heading into 2026.

How to Estimate Your Own 2026 Social Security Check (After Medicare)

You don’t need a fancy calculator to get a ballpark figure. Here’s a quick, back‑of‑the‑envelope method:

Start with your current gross monthly Social Security benefit.
- Example: $1,800/month in 2025.
Apply the 2.8% COLA. ^[32]
- Multiply your 2025 benefit by 1.028.
- $1,800 × 1.028 ≈ $1,850.
Subtract your new 2026 Part B premium.
- If you paid the standard $185 in 2025, your 2026 premium will likely be $202.90. ^[33]
- Compare:
  - 2025 net: $1,800 − $185 = $1,615
  - 2026 net: ≈ $1,850 − $202.90 ≈ $1,647.10
Look at the net change.
- In this example, your take‑home check rises only about $32 per month, even though the headline COLA suggests a bigger raise.
Adjust if you’re in a special situation:
- Low benefit (around $640 or less): hold harmless may limit your Part B increase. ^[34]
- High income: add the IRMAA surcharge for your income band to the $202.90 standard premium. ^[35]
- Not yet drawing Social Security: you’ll pay premiums directly to Medicare, so COLA offsets won’t apply until you claim.

What You Can Do Now to Prepare for 2026

With just weeks left in Medicare’s fall open enrollment (through December 7, 2025), there’s still time to respond to these changes. ^[36]

1. Review Your Medicare Coverage

Compare Medicare Advantage and Medigap + Part D options in your area.
Check:
- Premiums (Part C and D)
- Deductibles and max out‑of‑pocket limits
- Your preferred doctors and hospitals in‑network
- Your prescription drugs on the plan’s formulary

2. Look Into Help Paying Premiums

If your income and assets are modest, you may qualify for:

Medicare Savings Programs (MSPs) — state Medicaid programs that can pay Part B premiums, and sometimes deductibles and coinsurance. ^[37]
Extra Help (Low‑Income Subsidy) for Part D, which can reduce drug premiums and co‑pays.

Your State Health Insurance Assistance Program (SHIP) can provide free, unbiased help screening for these programs.

3. Rework Your 2026 Budget

Treat the Part B increase as a fixed bill in your monthly cash‑flow planning.
Consider trimming discretionary expenses or adjusting portfolio withdrawals slightly to make room for the higher health‑care bite.

4. Plan Around IRMAA

If you’re near an IRMAA income threshold: ^[38]

Coordinate with your tax or financial adviser about:
- Timing of Roth conversions
- Capital gains harvesting
- Large one‑time events (home sale, business sale, big IRA withdrawal)
Remember: 2024 income determines your 2026 IRMAA, but future years can still be managed more strategically.

5. Keep an Eye on Policy Updates

Think tanks, advocacy groups and some in Congress are already flagging affordability concerns and floating ideas such as expanding Medicare Savings Programs or tightening payments to Medicare Advantage plans. ^[39]

Nothing major is law yet, but if you rely heavily on Social Security and Medicare, it’s worth following how these debates evolve through 2026.

Bottom Line

For millions of older Americans, 2026 will be another year where health costs rise faster than their Social Security income.

Medicare Part B jumps nearly 10% to $202.90/month.
The Part B deductible and the Part A hospital deductible both increase.
Social Security’s 2.8% COLA softens the blow but doesn’t fully offset it for most retirees.

As the articles from The New York Times, CNN, USA TODAY and many financial outlets this week underscore, the real story isn’t just the headline numbers — it’s how they interact in your specific situation: your income, your benefits, your health needs.

Running the math on your own benefits, reviewing coverage before December 7, and exploring financial help if you qualify are the most important steps you can take right now.

Medicare Part B premiums could see a BIG increase in 2026