Medicare premiums are set to increase for 2026, putting a dent in retirees’ Social Security checks.
The Centers for Medicare & Medicaid Services announced last week that 2026 monthly Part B premiums will climb to $202.90, an increase of $17.90, nearly 10%, from $185 this year. And the annual Part B deductible, which most people must pay before their Medicare coverage begins, will rise by $26 in 2026, or 10%, to $283 from $257 in 2025.
“That’s the second-highest Part B premium increase in program history,” Mary Johnson, a Social Security and Medicare policy analyst, told Yahoo Finance.
And it hits just as seniors are coming to terms with the modest 2.8% cost-of-living adjustment (COLA) rise in the retirement benefit expected to start in January. Taken together, it means the higher Medicare premiums will consume nearly a third of the average Social Security COLA. According to the Social Security Administration, the average retired worker will see their monthly benefit rise from $2,015 to $2,071.
This is especially noteworthy when considered in relation to the COLA. “That’s a 9.7% rate of increase vs. a COLA rate of just 2.8%,” Johnson said. “Part B premiums are rising almost 3.5 times faster than the COLA.”
Not everyone will feel the squeeze. Under Social Security “hold harmless” rules, a person’s Part B premium increase cannot be larger than their COLA.
Eligibility is limited to those who have their Part B premiums deducted directly from their Social Security benefits and do not pay a higher premium due to income.
According to Philip Moeller, a Medicare and Social Security expert who writes the Aging in America newsletter, it’s estimated that roughly a million Social Security beneficiaries will see their Part B increase capped because of the hold harmless provision.
Medicare Part B covers physicians’ services, outpatient hospital services, certain home health services, durable medical equipment, and other health services not covered by Medicare Part A.
Read more: How to find your 2026 Social Security COLA increase
The agency also announced other 2026 Medicare cost increases, including the high-income surcharges.
Since 2007, a beneficiary’s Part B monthly premium has been based on his or her income. About 8% of Medicare users earn too much to qualify for the standard Part B and Part D premiums and must pay the surcharges.
In 2026, Medicare beneficiaries with an income exceeding $109,000 for single-tax filers and $218,000 for joint filers will pay the surcharge. For these beneficiaries, total monthly Part B premiums will range from $284.10 to $689.90.