Why January Social Security Checks Are Often Smaller

"The problem is that most seniors have their Medicare Part B premiums automatically deducted from their Social Security check. Medicare is the national insurance program for those 65 and up. Those premiums often grow at a faster rate than the COLA, wiping out the jump which is supposed to help with inflation. This year's premium is increasing 9.7%, from $185 to $202.90 per month."

"The only upside here is the "hold harmless provision," which offers some protection for retirees who have their Medicare premiums automatically deducted from their Social Security checks. The provision means you can't lose more than your COLA to cover the rising premiums. So it prevents your net payment from falling."

"Social Security recipients with high incomes pay even higher Medicare premiums through income-related monthly adjustment amounts (IRMAA). For most people, this will be deducted from your S.S. check, so January adjustments can be an unwelcome surprise."

Social Security recipients receive cost of living adjustments (COLAs) each January to combat inflation. For 2026, beneficiaries received a 2.8% COLA increase. However, most seniors experience smaller January checks because Medicare Part B premiums, automatically deducted from Social Security payments, are rising faster than the COLA. This year's Medicare Part B premium increased 9.7%, from $185 to $202.90 monthly, significantly eroding the COLA benefit. A "hold harmless provision" protects some retirees by preventing net payment losses exceeding the COLA amount. High-income retirees face additional pressure through income-related monthly adjustment amounts (IRMAA), which further increase Medicare premiums and reduce their Social Security checks.

Read at 24/7 Wall St.