Medicare’s 2026 premium hike erases Social Security’s COLA for many retirees

For many retirees, the 2.8% Social Security cost-of-living adjustment in 2026 will deliver no actual increase in income. The standard Medicare Part B premium has risen to $202.90 per month, up from $185.00 in 2025 — a $17.90 jump that is deducted directly from Social Security checks. For the average retiree collecting $2,071 monthly, the COLA adds $56 before Medicare. After the premium increase, the net gain is about $39. But for retirees with smaller benefits, the math is worse. A monthly check of $600 receives a COLA of just $16.80 — less than the premium hike. Under the 'hold harmless' provision, those beneficiaries won’t see their checks shrink, but they also won’t see any raise. Their entire COLA is absorbed by Medicare. Higher-income retirees face steeper cuts. Those with MAGI of $500,000 or more (or $750,000+ for joint filers) pay an IRMAA surcharge of $487.00 on top of the base premium, bringing their total Part B cost to $689.90 per month. For these beneficiaries, the surcharge can erase the entire 2.8% COLA increase.