In 2026, millions of seniors in the United States will face higher healthcare costs as Medicare Part B premiums rise sharply.
The increase is almost 10 percent, meaning that a significant portion of the Social Security cost-of-living adjustment, or COLA, will be used to pay the new premiums.
For older adults and families depending on Social Security, this change is important to understand so they can plan their finances carefully.
Medicare Part B Premiums Explained
Medicare Part B helps cover doctors’ visits, outpatient hospital services, and some medical supplies.
According to the Centers for Medicare and Medicaid Services, the 2026 Part B premium will be $202.90 per month, up from $185 per month in 2025. This marks the first time the standard Part B premium has crossed the $200 mark.
The monthly increase is $17.90, which represents a nearly 10 percent rise. Medicare analyst Mary Johnson said this is the second-largest dollar increase in Part B history, just behind the $21.60 hike in 2022.
Impact on Social Security COLA
The Social Security cost-of-living adjustment for 2026 is projected to be 2.8 percent, adding about $56 per month to the average Social Security check.
However, because Part B premiums are automatically deducted, around one-third of this increase will go toward paying the higher premium.
Here is a simple table showing the impact:
| Item | Amount |
|---|---|
| Current Part B Premium | $185.00 |
| 2026 Part B Premium | $202.90 |
| Monthly Increase | $17.90 |
| Average COLA Increase | $56.00 |
| COLA Eroded by Part B | $18.00 |
Mary Johnson noted that many seniors may feel like most of their COLA increase is gone, as healthcare costs continue to rise faster than overall inflation.
Reasons for the Increase
Several factors contribute to higher Part B premiums. Healthcare costs, housing, and food prices are rising. The original projection for Part B was even higher at $206.50 per month, but new changes have lowered the final number.
A major factor is wound-care products called skin substitutes used in skin grafts. Spending on these products rose from $256 million in 2019 to over $10 billion in 2024.
Changes in the 2026 Medicare rules are expected to cut spending on skin substitutes by 90 percent, which helped reduce the Part B increase.
Income-Related Premium Adjustments
Since 2007, Medicare Part B premiums are based on income. Beneficiaries earning over $109,000 per year may pay even higher premiums.
Currently, about 8 percent of people with Medicare Part B are affected by these extra income-related monthly adjustments.
For lower-income beneficiaries, the “hold harmless” provision helps. Social Security recipients with benefits of $640 or less cannot have their Part B premium increase more than their COLA.
About four million low-income seniors will be protected under this rule, keeping their premium increase limited.
The 2026 Medicare Part B premium increase will affect millions of seniors across the United States. While it helps cover rising healthcare costs, it also reduces the net benefit of Social Security COLA, especially for middle-income seniors.
Low-income beneficiaries will benefit from protections under the hold harmless rule.
Seniors and families should plan their budgets carefully for 2026, as healthcare costs and other expenses continue to rise. rising. Seniors and families should plan for these higher costs in their 2026 budgets.
FAQs
The standard Part B premium will be $202.90 per month, up from $185 in 2025.
No, about one-third of the Social Security COLA will be used to cover the higher premium.
Yes, the hold harmless provision caps the Part B premium increase for roughly four million low-income Social Security beneficiaries.
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