Social Security COLA to Boost Retiree Benefits This Year, But Rising Medicare B Premiums May Offset Gains

Core Insights - Rising Medicare costs are significantly reducing the benefits of Social Security's cost-of-living adjustment (COLA) for retirees [1][7][8] Summary by Sections Social Security and Medicare Premiums - Retirees will receive a 2.8% COLA increase in 2026, translating to an additional $57 in their monthly Social Security benefits [2][3] - The standard Medicare Part B premium will increase to $202.90, a rise of $17.90 from 2025, which effectively reduces the net benefit from the COLA to just $39.10 [2][3][7] Impact of Premium Increases - The increase in Medicare Part B premiums is approximately 9.7%, which directly impacts the net increase in Social Security benefits for retirees [8] - Most retirees will face the full premium increase, but those with lower benefits may not see a reduction in their monthly payments due to the "hold harmless provision" [4][8] Reasons for Premium Increase - The Centers for Medicare & Medicaid Services attribute the rise in premiums to projected price changes and increased utilization of Medicare services, indicating ongoing healthcare cost inflation [8][9]