The Social Security cost-of-living adjustment for 2026 is 2.8 percent, giving most beneficiaries a modest increase in their monthly benefits. At the same time, the standard Medicare Part B premium is rising to $202.90 per month, an increase of $17.90 from the $185.00 premium in 2025.

While the COLA provides extra income, it may not fully offset the rise in Medicare costs. For example, someone receiving $1,800 per month in 2025 would see that rise to about $1,850 in 2026. After accounting for the Part B premium increase, their net gain would be closer to $32 per month. This marks the third straight year that the Part B premium has increased faster than the Social Security COLA.

The effect of the COLA on your Medicare costs depends on your specific situation. If you are enrolled in a Medicare Advantage plan, your premium changes may differ. If you qualify for Extra Help or a Medicare Savings Program, you may not feel the full impact of premium increases at all.

It is a good idea to review your benefits annually to understand how changes in Social Security and Medicare might affect your monthly budget.