In 2026, retirees who collect Social Security got an increase in their monthly benefits. Specifically, the cost-of-living-adjustment (COLA) for 2026 totaled 2.8%. With the average Social Security benefit coming in at around $2,000 per month, this adds up to a benefits increase of about $56 per month.
This extra money is important to help seniors maintain their buying power. Since prices rise thanks to the effects of inflation, Social Security benefits can’t stay stagnant, or seniors would constantly lose ground. Unfortunately, while the 2.8% raise in 2026 was bigger than the 2.5% benefits bump that happened in 2025, many retirees didn’t end up seeing very much extra money in their checks at all. And that’s all because of Medicare premiums.
While most retirees 65 and up took a hit from Medicare premiums, some fared far worse than others. Here’s why Medicare took such a big bite out of Social Security checks and what you can do to fight back.
Why rising Medicare Part B premiums are making your Social Security COLAs disappear
For many retirees who are covered by Medicare and who collect Social Security benefits, premiums come directly out of their Social Security payments. This means that if there’s a big increase in Medicare premiums, the extra money going to Medicare each month can reduce, or even eliminate, the additional funds the COLA provides.
In 2026, for example, the annual Medicare premium for Part B (outpatient) coverage rose from $185 to $202.90. That’s a $17.90 increase and close to a 10% price surge year-over-year. With the typical senior collecting around a $56 benefits increase based on a $2,000 average benefit, it doesn’t take complicated math to know that $17.90 in added Medicare costs takes up about 1/3 of that amount.
The good news is, even if the Part B premium spike had been higher, hold harmless provisions prevent premium increases from exceeding the amount of the COLA. So you could lose your entire raise if there’s a big premium increase that equals or exceeds the full amount of your cost-of-living adjustment, but your Social Security benefits can’t decline because Medicare got more expensive.
There are some special circumstances, though, where you could see even higher price hikes. That’s because of Income-Related Monthly Adjustment Amount (IRMAA).
If your Modified Adjusted Gross Income (MAGI) exceeds the IRMAA thresholds, your premiums will be much higher than the standard. And the MAGI that counts is from two years ago, so in 2026, you could get hit with a big Medicare premium increase if you earned a lot of money in 2024.
If your MAGI in 2024 was above $109,000 in 2024 for an individual tax filer or $218,000 if you filed a joint return, Medicare premiums will jump to at least $284.10 in 2026, and they keep going up from there as your income rises.
How you can fight back against big Medicare increases
If you were just subject to the sandard $17.90 Medicare increase in 2026, there’s nothing you can do. You can’t fight it — you have to pay the premium increase for this coverage. It applies to everyone.
However, if you’re facing higher premiums because your income pushes you over the IRMAA threshold, you may have some options. Specifically, you can file Form SSA-44 to request a lower Medicare premium if your income has significantly declined due to a life-changing event over the last two years.
An IRMAA appeal may be successful for you if any of these life events reduced your income substantially since 2024:
- Marrige
- Divorce
- The death of your spouse
- A work stoppage
- A work reduction
- The loss of income-producing property
- Loss of pension income
- An employer settlement payout
Appealing is essential when these events cause a big income drop, as Medicare premiums are already getting higher for everyone. You don’t need to face above-average costs based on two-year-old tax data showing you’re a high earner.
For those who can’t do anything about their added Medicare costs, though, the best thing to do is to work with a financial advisor who can help you budget based on the Social Security payments and other retirement income you actually bring home after essential deductions like insurance premiums come out.
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