Medicare Part B Premiums Are Devouring Your Social Security Raise

The 2026 Social Security cost-of-living adjustment (COLA) landed with a thud. At just 2.8%, the increase adds roughly $56 to the average monthly check.

But for many retirees, even that modest boost is an illusion due to increasing Medicare Part B premiums. Medicare Part B covers outpatient care like doctor visits, medical equipment and lab tests.

The standard monthly premium for 2026 has jumped to $202.90 — up nearly 10% over the previous year. This single line item effectively wipes out about one-third of the average COLA increase.

It is a recurring pattern that financial experts warn is slowly eroding the purchasing power of older Americans. While Social Security tries to keep up with the price of milk and gasoline, it consistently fails to keep pace with the skyrocketing cost of modern health care.

The disparity stems from how these two figures are calculated. The Social Security raise is tied to the Consumer Price Index, which measures inflation for wage earners. It heavily weights everyday expenses like housing and transportation.

Medicare premiums, however, are legally required to cover about 25% of the program’s actual costs. When Medicare spending rises, your premiums rise with them.

For 2026, the Centers for Medicare and Medicaid Services attributed the 9.7% premium hike to projected price changes and higher utilization of outpatient services.

It’s an ongoing issue, according to new data from The Senior Citizens League, which highlights a widening gap over the last two decades. Since 2000, Social Security benefits have grown by approximately 87%. In that same period, Medicare Part B premiums have surged by nearly 200%.

According to the Social Security Administration, the “hold harmless” provision prevents your Social Security check from declining in dollar terms if premiums rise faster than your COLA. However, it doesn’t protect the value of that check. For most retirees, the COLA simply passes through their hands and goes straight back to the government.

Furthermore, higher-income retirees face an even steeper climb. If your income exceeds $109,000 (individual), you will pay income-related monthly adjustment amounts (IRMAA), meaning your premiums could range from $284.10 to nearly $690 per month.

The hard numbers

To better understand this trend, look at the recent history of rate hikes. The following table contrasts the percentage increase of Medicare Part B premiums against the Social Security COLA for 2026 and every year back to 2017.

Note the years where the premium hike is double or triple the inflation adjustment.

For more on how Medicare is changing this year, read “6 Medicare Costs Will Jump in January — and the Part B Hikes Are Far Worse Than Inflation.”