"Part B premiums increased to $202.90 in 2026, which is a 9.7% increase from the $185 that premiums cost in 2025. Orman specifically warned Social Security retirees about this because the big increase in Medicare insurance costs in 2026 would mean that the Cost of Living Adjustment (COLA) applied to seniors' retirement checks this year would be substantially reduced by the added premiums they now have to pay."
"Retirees got a 2.8% COLA in 2026, with the 2.8% increase to their benefits aimed at helping them cope with inflation. But, since Medicare premiums increased by 9.7%, a good portion of the COLA will be diverted to paying for the extra Medicare premiums before retirees even get their deposits. In fact, for the average retiree, close to a third of the additional money coming from the COLA will go to added Medicare costs."
Millions of older Americans depend on Social Security for retirement income, but face substantial financial pressure in 2026. Medicare Part B premiums rose to $202.90, a 9.7% increase from $185 in 2025. Since many seniors pay Medicare premiums directly from their Social Security checks, this increase significantly erodes their Cost of Living Adjustment. Although retirees received a 2.8% COLA to help with inflation, approximately one-third of this additional money goes toward higher Medicare costs. This creates a net loss in purchasing power for seniors relying on these benefits. The issue affects not only current retirees but also pre-retirees planning for retirement.
Read at 24/7 Wall St.
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