Millions of older Americans will see a larger chunk of their Social Security cost-of-living adjustment disappear next year as Medicare Part B premiums climb to their highest level yet. The Centers for Medicare & Medicaid Services has confirmed that the standard Part B premium will rise to $202.90 per month in 2026, marking the first time premiums have surpassed the $200 threshold.
The $17.90 monthly increase represents roughly a 10% jump from the current $185 rate. That percentage is more than triple the 2.8% Social Security COLA that 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 one-third of that increase will be absorbed immediately.
Don’t Miss:
“The public is likely to perceive this Part B increase as taking most of their COLA,” Mary Johnson, an independent Social Security and Medicare analyst, told MarketWatch. “This is just a continuation of rising cost news. We haven’t seen any indications whatsoever that costs are going down.”
CMS attributes most of the Part B premium increase to “projected price changes and assumed utilization increases.” The agency also said that the premiums would have climbed even higher if the federal government hadn’t acted to curb spending on wound-care products known as skin substitutes.
Spending on these products had grown from $256 million in 2019 to more than $10 billion by 2024, according to CMS. Because of new rules finalized in the 2026 Physician Fee Schedule, CMS expects spending on skin substitutes to drop by 90%. Without that change, premiums would have been about $11 higher per month, the agency said.
Trending: 7 Million Gamers Already Trust Gameflip With Their Digital Assets — Now You Can Own a Stake in the Platform
As in previous years, premiums in 2026 will be tied to income. About 8% of Medicare beneficiaries will pay income-related monthly adjustment amounts, which can raise total Part B premiums significantly, CMS says.
Individuals with incomes above $109,000 and couples filing jointly earning above $218,000 will pay more than the standard $202.90.
