The Medicare Part B premium is set to see a notable increase in 2026, impacting the cost of living adjustments (COLA) for many Social Security recipients. According to the Centers for Medicare and Medicaid Services (CMS), the standard monthly premium for Medicare Part B will rise to $202.90. This reflects an increase of $17.90, or approximately 9.7%, from the 2025 premium of $185.00.
Key Figures for Medicare Part B in 2026
- 2026 Medicare Part B Premium: $202.90
- 2025 Medicare Part B Premium: $185.00
- Increase Amount: $17.90
- Percentage Increase: 9.7%
- Projected Social Security COLA Increase: $56 (average), 2.8%
Impact on Seniors’ Finances
This increase in Medicare premiums will absorb a significant portion of the 2.8% Social Security COLA. While checks will rise by an average of $56 starting in January, the increase in Medicare Part B will effectively reduce the net COLA increase to $38.10 for many seniors.
Experts indicate that this could lead to a decline in living standards for older Americans, especially since seniors were the only demographic to experience an increase in poverty levels in 2024.
Hold-Harmless Provision and Its Implications
The substantial rise in Medicare Part B premiums may activate the hold-harmless provision. This rule protects Social Security recipients with benefits of $640 or less, preventing their premiums from increasing beyond their COLA. Without this protection, beneficiaries would bear the full extent of the premium increase.
Eligibility for Hold-Harmless Provision
- New Medicare enrollees
- Individuals not receiving Social Security benefits
- High-income earners
During 2022, only 1.5% of Medicare beneficiaries were protected by the hold-harmless rule. The rapid rise in Medicare costs continues to be a concern for many seniors, with the annual deductible for Part B increasing to $283 in 2026, up from $257 in 2025.
Potential Mitigating Factors
Despite the increase, CMS noted that the premium hike could have been even higher. Actions taken by the previous administration helped curb excessive spending in specific healthcare areas, which contributed to lower projections for premium increases. The reclassification of skin substitutes is anticipated to cut spending on these products by nearly 90% in 2026.
In conclusion, the climb in Medicare Part B premiums for 2026 poses significant financial challenges for many seniors, particularly in light of the relatively modest Social Security COLA adjustment. The interplay between rising healthcare costs and fixed income benefits remains a critical issue for the aging population.
