Millions of older Americans will see more of their Social Security cost-of-living adjustment disappear next year as Medicare Part B premiums reach their highest level yet. The Centers for Medicare & Medicaid Services has confirmed that the standard Part B premium will increase to $202.90 per month in 2026, marking the first time premiums have surpassed the $200 threshold.
The monthly increase of $17.90 represents approximately a 10% increase from the current rate of $185. That percentage is more than triple the 2.8% Social Security COLA beneficiaries will receive in January. For the average retiree, this COLA adds about $56 per month, but because Part B premiums are automatically deducted from Social Security checks, about a third of that increase will be absorbed immediately.
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“The public is likely to perceive this Part B increase as a loss of most of their COLA,” Mary Johnson, an independent Social Security and Medicare analyst, told MarketWatch. “This is just a continuation of the news about rising costs. We haven’t seen any indication that costs are coming down.”
CMS attributes most of the Part B premium increase to “projected price changes and assumed utilization increases.” The agency also said premiums would have risen even more if the federal government had not acted to curb spending on wound care products known as skin substitutes.
Spending on these products had increased from $256 million in 2019 to more than $10 billion in 2024, according to CMS. Due to new rules finalized in the 2026 Physician Fee Schedule, CMS expects spending on skin substitutes to be reduced by 90%. Without that change, premiums would have been about $11 higher per month, the agency said.
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As in previous years, premiums in 2026 will be linked to income. About 8% of Medicare beneficiaries will pay income-related monthly adjustment amounts, which can significantly increase total Part B premiums, CMS says.
Individuals with incomes over $109,000 and couples filing jointly who earn more than $218,000 will pay more than the standard $202.90.