Though not as high as originally estimated, standard Medicare Part B premiums will rise by nearly $18/month (10%) in 2026, eating up about one third of the average beneficiaries’ Social Security cost-of-living adjustment (COLA). This is the third highest increase in Part B premiums since 2016. Next year’s standard Part B monthly premium will be $202.90, compared to the current $185/per month. The average COLA will be $56 per month — less the $18 Medicare Part B premium hike, leaving the average Social Security beneficiary with an effective monthly increase of $36 next year.
The 2.8% 2026 COLA announced in October was already modest before taking Medicare Part B premiums into account. In this economy, an average $36 extra per month will be only marginally helpful to Social Security beneficiaries. Seniors whose benefits are below average will have even less of a benefit bump once Medicare Part B premiums are deducted. Some in the lower income brackets will see an effective COLA of zero!
None of this is good news for seniors on fixed incomes struggling to make ends meet in the face of ongoing inflation, exacerbated by Trump’s tariffs and reckless stewardship of the economy.
Social Security COLAs are meant to offset the impact of inflation on beneficiaries. But they clearly are not adequate for many seniors of modest means. That is why we have long advocated for an improved COLA formula — the CPI-E (Consumer Price Index – Elderly), which would more accurately reflect the effect of inflation on the goods and services seniors depend on. We support legislation that would adopt the CPI-E for determining COLAs, but Congress has yet to act on it. This would be a more than reasonable step toward expanding benefits to truly meet the needs of 21st century seniors. – Max Richtman, President & CEO, National Committee to Preserve Social Security & Medicare
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Media inquiries contact:
Walter Gottlieb