Suze Orman’s Medicare Warning Is Hitting Retirees’ Social Security Checks

Millions of older Americans rely on Social Security benefits to fund their retirement, but many seniors who are 65 and older and already collecting those benefits absorbed a painful financial blow this year. Finance expert Suze Orman saw it coming. She issued a pointed warning in December 2025, and that warning has since become reality for retirees across the country.

Suze Orman warned retirees about this Medicare issue

Orman’s warning centered on Medicare premiums. As she explained on the Suze Orman blog, the majority of Social Security retirees aged 65 and older are enrolled in Medicare, and their premiums for that coverage are deducted directly from their monthly Social Security deposits. The problem is that the cost of Medicare coverage jumped sharply in 2026. The standard monthly Part B premium rose to $202.90, up from $185.00 in 2025, a nearly 10% increase set by the Centers for Medicare and Medicaid Services (CMS).

The timing created a real squeeze for retirees. Social Security beneficiaries received a 2.8% Cost of Living Adjustment (COLA) for 2026, which translated to roughly $56 more per month for the average retired worker, bringing the typical monthly benefit to about $2,064. That extra money was meant to help seniors cope with inflation. Instead, the Part B premium hike consumed approximately one-third of that dollar gain before recipients ever saw it in their accounts. The effective COLA, after subtracting the Medicare premium increase, amounted to closer to 2.1% for most enrollees. It is worth noting that a “hold-harmless” rule does protect some lower-income beneficiaries: by law, a Social Security recipient’s Part B premium cannot increase by more than the dollar amount of their annual COLA. That protection, however, does not apply to all enrollees.

Medicare costs are not limited to premiums. The Part B annual deductible also climbed to $283 in 2026, up from $257 in 2025, adding another layer of out-of-pocket expense that further erodes the purchasing power of a fixed Social Security benefit.

Even pre-retirees need to be worried about this issue

Orman’s warning was never intended only for people already enrolled in Medicare. She made clear that workers who have not yet reached retirement age need to factor these costs into their long-range planning. “Even if you have yet to enroll in Medicare, I need you to listen up. Part B is a significant expense you need to work into your financial planning for retirement,” Orman wrote on her blog.

The numbers behind her advice are stark. According to Orman’s blog, the monthly cost of Part B premiums has risen by nearly 53% over the past decade, and there is little reason to expect that trend to slow. She projects that if premium growth continues at a similar pace, the standard monthly Part B cost could exceed $300 per person by 2036. That projection is consistent with the 2025 Medicare Trustees Report, which forecasts the Part B premium reaching close to $350 per month by 2034.

The broader healthcare picture for retirees is even more demanding. According to Fidelity Investments, the average retired couple will need approximately $345,000 to cover healthcare costs after age 65, a figure that underscores how far Medicare alone falls short of covering total medical expenses. Meanwhile, the nonpartisan Senior Citizens League is projecting the 2027 Social Security COLA at 3.8%, which would provide some relief, but premium trends suggest Medicare costs will continue to outpace those annual adjustments over time.

Current retirees are already managing the fallout from a premium increase that was more than three times larger than this year’s COLA. For workers who still have years before retirement, the lesson is clear: building a dedicated healthcare reserve and working with a financial advisor to model rising Medicare costs into a long-term plan is no longer optional. Without that preparation, rising premiums risk turning what should be a secure retirement into an ongoing financial struggle.

Editor’s note: This update adds the 2026 Part B annual deductible increase (from $257 to $257 in 2025 to $283 in 2026), the average retired worker’s post-COLA monthly benefit of approximately $2,064, the hold-harmless rule protecting some lower-income enrollees, Fidelity’s estimate that a retired couple needs roughly $345,000 for post-65 healthcare, the Medicare Trustees Report projection of Part B premiums approaching $350 by 2034, and the Senior Citizens League’s 2027 COLA forecast of 3.8%.

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