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COLA

How Medicare Part B Premiums Can Reduce Your Social Security COLA Increase

The 2026 COLA raises Social Security benefits, but Part B premiums deducted from payments can reduce the increase in the amount deposited.

By TheFinanceBase Team 3 min read

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Your Social Security cost-of-living adjustment (COLA) raises your benefit, but the amount deposited can rise by less if Medicare Part B premiums are deducted from your payment. The COLA applies to the Social Security benefit calculation; the Part B premium is subtracted afterward. For 2026, the COLA is 2.8% and the standard Part B premium is $202.90 a month, though individual results vary with benefit and premium amounts.

Why did my Social Security payment rise by less than the COLA?

A COLA increases your gross Social Security benefit, not necessarily the net amount that reaches your bank account. If you have Part B premiums withheld from your benefit, those premiums reduce the payment after the COLA is applied. The difference is between the increase to your benefit and the change in your deposit; it does not mean Social Security took away part of the COLA.

The size of the net change depends on your benefit, your previous and current Part B premium, any income-related premium adjustment or assistance, and SSA’s rounding rules. SSA increases the primary insurance amount (PIA) by the COLA and truncates the result to the next lower dime. It then applies factors such as early or delayed retirement, subtracts offsets including the Medicare Supplementary Medical Insurance premium, and truncates the resulting benefit to the next lower dollar. As a result, the final payment change may not match the COLA percentage exactly. SSA explains how it applies a COLA to a retirement benefit.

What are the 2026 COLA and Part B premium?

Item 2026 amount or timing
Social Security COLA 2.8%; applies to benefits payable in January 2026. SSA says it is based on CPI-W changes from the third quarter of 2024 through the third quarter of 2025. SSA 2026 COLA fact sheet
Standard Medicare Part B premium $202.90 per month. Higher amounts may apply based on income. Medicare costs
Average retired-worker benefit $2,015 before the COLA and $2,071 after it, according to SSA’s 2026 estimate. This is an average, not an individual payment guarantee or necessarily the amount deposited after premiums. SSA 2026 COLA fact sheet
Part B deductible $283 in 2026. This is separate from the monthly premium and is not automatically deducted from a Social Security payment. Medicare costs

The standard premium is owed even if you do not use Part B services. A deductible is a separate amount that may apply to covered care; it should not be confused with the monthly premium withheld from a benefit.

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Does Part B come out of a Social Security check?

Usually, yes. Most people receiving Social Security or Railroad Retirement Board benefits have their Part B premium deducted automatically. People who do not receive those benefits generally get a Medicare premium bill instead. Medicare explains how to pay Part A and Part B premiums.

Why might my Part B premium be higher than the standard amount?

Some beneficiaries pay an income-related adjustment in addition to the standard Part B premium. The applicable amount depends on modified adjusted gross income and tax filing status, so two people with the same Social Security benefit may have different Medicare deductions. If your income has gone down, SSA says you may ask it to review the income-related amount using Form SSA-44.

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Can the Part B premium cancel out a COLA increase?

It can reduce the increase in your net deposit, and depending on the individual benefit and premium change, the deposit may rise only slightly or not rise. The standard 2026 premium alone is not enough information to calculate your personal result: the relevant comparison is your old premium against your new premium, including any income adjustment or assistance, alongside your benefit calculation.

For your own figures, check the COLA notice from Social Security or sign in to your secure Social Security account. Review the Medicare premium information as well. Do not estimate your net increase by subtracting the new $202.90 standard premium from a COLA-adjusted benefit: that premium may not be your old or new amount, and it does not account for the other factors in your payment.

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How is the COLA determined?

SSA bases the annual COLA on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). For the 2026 adjustment, the comparison period was the third quarter of 2024 through the third quarter of 2025. The COLA changes the benefit calculation; Medicare premiums are a separate cost that may then be deducted from the payment. SSA’s COLA information provides background on the adjustment.

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