The announced increase in the standard Medicare Part B monthly premium for 2026 is set to significantly offset the annual Social Security Cost-of-Living Adjustment (COLA), diminishing the net increase in monthly benefits for many retirees. For the first time, the standard Part B premium will top $200, consuming a substantial portion of the COLA designed to help beneficiaries keep pace with inflation.
The Medicare Part B Increase
The standard monthly premium for Medicare Part B, which covers doctor visits, outpatient services, and some preventive care, is rising by $17.90 to $202.90 in 2026, up from $185.00 in 2025. This nearly 10% increase is one of the largest in the program’s history. The jump is largely attributed to rising healthcare expenses, including costs for physician-administered drugs and increasing utilization.
In addition to the premium, the annual Part B deductible will also increase by $26, rising from $257 in 2025 to $283 in 2026.
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2026 Standard Part B Premium: $202.90 (up from $185.00)
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2026 Part B Annual Deductible: $283 (up from $257)
Impact on the Social Security COLA
Social Security recipients will receive a 2.8% COLA for 2026. This adjustment is applied to the average retired worker’s monthly benefit, raising it by about $56 (from an estimated $2,015 to $2,071).
Since the Medicare Part B premium is automatically deducted from most beneficiaries’ Social Security checks, the $17.90 increase in the premium will directly reduce the amount of the COLA that retirees actually receive.
For the average Social Security beneficiary:
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Average Monthly COLA Increase: ~ $56.00
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Monthly Part B Premium Increase: ~ $17.90
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Net Monthly Benefit Increase: ~ $38.10
This means the Part B increase alone will wipe away approximately one-third of the average COLA increase, leaving seniors with a smaller net gain to cover rising costs for food, housing, and other necessities.
The “Hold Harmless” Provision
While the large Part B increase will be a blow to many, a federal provision known as the “hold harmless” rule offers protection to a large portion of current Social Security recipients.
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What it does: The rule prevents a Part B premium increase from reducing a beneficiary’s Social Security check below the previous year’s benefit amount. Essentially, for those protected, the Part B premium increase cannot exceed the dollar amount of their COLA.
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Who is protected: The hold harmless rule typically applies to beneficiaries who have been receiving Social Security payments since at least November of the prior year and whose Part B premiums are deducted directly from their Social Security checks.
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Who is NOT protected: This rule generally does not protect new Medicare enrollees, those who pay a higher premium due to the Income-Related Monthly Adjustment Amount (IRMAA), or those whose premiums are not deducted from their Social Security checks. These beneficiaries will pay the full standard premium or higher IRMAA-adjusted amount.
For those not protected by the hold harmless rule, the substantial increase in Medicare Part B premiums means that the 2.8% COLA may be largely, or even completely, negated
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