Rising Medicare Premiums Could Impact 2026 Social Security Checks
Millions of Americans, including Social Security Disability receivers, will see their Social Security benefits rise in 2026, thanks to a 2.8% Cost-of-Living Adjustment (COLA). But for many retirees, the good news comes with a catch: higher Medicare Part B premiums are expected to eat into that increase. Roughly 69 million Americans are enrolled in Medicare, which also covers people with disabilities.
While the COLA is designed to help beneficiaries keep up with inflation, rising healthcare costs, especially Medicare premiums, can significantly reduce the actual amount recipients take home. Max Richtman, the president and CEO of the National Committee to Preserve Social Security and Medicare (NCPSSM), told CBS News “so many rely on [Social Security] for all or most of their income. This is gonna hurt.”
Each year, the Medicare Part B premium, deductible, and coinsurance rates are determined according to provisions of the Social Security Act. Medicare’s Part B covers doctor visits, outpatient services, certain home health services, medical equipment and medications that many disabled Americans rely on. Since Medicare premiums are automatically deducted from most individuals’ Social Security checks, higher healthcare costs reduce the net amount those receiving Social Security disability and retirees actually receive each month.
Medicare Part B premiums are set to jump nearly 10% next year, the largest increase in four years and second-largest rise, in dollar terms, in the program’s history. The standard monthly premium will increase by $17.90 from this year to equal $202.90 according to the Centers for Medicare and Medicaid Services (CMS). The annual deductible for Part B is also rising, adding more out-of-pocket costs for medical services. That will eat up nearly one-third of the $56 monthly Social Security COLA that retirees will receive in 2026.
Americans have already been struggling with growing healthcare insurance costs and the inflated price of food, gas, and utilities. “In a world in which people are concerned about the affordability of health care and all other needs, it’s pretty distressing that this increase is so large,” said Jeanne Lambrew, director of health care reform at The Century Foundation.
What Beneficiaries Can Do to Prepare
There is no way to avoid the Part B premium increase, but beneficiaries can take steps to minimize the financial impact:
Review the 2026 Benefit Notice. Social Security sends a detailed letter each fall showing:
- Updated benefit amounts
- Medicare premium deductions
- Net monthly payment
Evaluate Your Monthly Budget. Medicare deducts its premiums before benefits arrive, so beneficiaries should plan expenses around the net amount, not the gross COLA increase.
Check Your Medicare Coverage. Review whether a Medicare Advantage plan or prescription drug plan could reduce out-of-pocket costs overall.
Seek Assistance if Needed. Low-income beneficiaries may also qualify for:
- Medicare Savings Programs
- Extra Help (for prescription costs)
- Medicaid, in some cases
Several proposals have been suggested to limit the growth in Medicare Part B spending and help limit the growth in Medicare premiums. Lawmakers have considered various proposals to broaden site neutral payment reforms and tighten payments for Medicare Advantage. Others have proposed ways to limit the growth in spending for Medicare Part B physician-administered drugs.
Expanding eligibility for the Medicare Savings Programs by increasing income and assets thresholds is another tactic. This approach addresses affordability concerns for more people with Medicare but doesn’t speak to underlying cost growth, and seems unlikely to move forward in the near term given fiscal pressure on states in the wake of Medicaid spending reductions included in the 2025 Federal Budget Reconciliation Law.
The 2026 Social Security COLA provides a modest boost, however, rising Medicare Part B premiums will significantly reduce the amount retirees see in their checks. For many, the increase will feel more like a small adjustment rather than meaningful financial relief. Keep a close eye on benefit notices and update personal budgets early will help older adults prepare for the new year and better manage rising healthcare costs.
Lowery Law Group is here for you. We stand ready to help secure the benefits you need and deserve. Contact us at info@lowerylegal.com or call (843) 991-0733. There is no fee for a free consultation regarding your claim.