Medicare's 9.7% Part B Hike Eats 32% of 2026 Social Security COLA
Updated
Updated · Yahoo Finance · Sep 1
Medicare's 9.7% Part B Hike Eats 32% of 2026 Social Security COLA
3 articles · Updated · Yahoo Finance · Sep 1
Summary
$17.90 of the average retiree's roughly $56 monthly Social Security increase in 2026 disappeared into higher Medicare Part B premiums before checks were deposited.
The standard Part B premium rose 9.7% to $202.90 from $185, while the annual deductible climbed $26 to $283, leaving the premium equal to 9.7% of the average July benefit of $2,085.98.
That increase was the second-largest dollar jump in Part B history, and Boston College researchers said premiums reached a record 9.4% share of the average annual Social Security benefit in 2026.
Retirees were already under pressure because the 2.8% COLA was overtaken by inflation by spring, and benefits have lost 13.7% of purchasing power since 2016, according to the Senior Citizens League.
The squeeze is especially acute for the 44% of retirees who rely entirely on Social Security, as the COLA formula is tied to CPI-W, which tracks working-age spending rather than seniors' costs.