Medicare premiums erode Social Security COLA in 2026

Core Insights - Medicare beneficiaries will experience an overall increase in premiums in 2026, impacting the cost-of-living adjustment (COLA) for Social Security recipients [1][2] - The standard Part B premium will rise by 9.7% to $202.90 per month, marking the first time it exceeds $200, which will reduce the effective COLA for many retirees [1][2] Medicare Premiums and Costs - The average retired worker receiving $2,008 per month will see their COLA reduced from 2.8% to 1.9% due to a $17.90 increase in premiums, while those receiving $1,000 will experience a reduction to approximately 1% [2] - The Part A deductible for hospital admissions will increase to $1,736, and coinsurance for extended hospital stays will also rise [4] - Part B's annual deductible will increase by 10% to $283, while the average Part D premium will slightly decline to $34.50, but the maximum deductible will rise to $615 and the out-of-pocket cap will increase to $2,100 [5] Broader Trends in Healthcare Costs - Health care inflation is outpacing general inflation, with national health expenditures expected to exceed GDP growth for the foreseeable future [5] - The rising costs of outpatient care are reflected in Part B premiums, as more services and medications are being delivered outside hospital settings [6] - The expansion of Medicare Advantage is contributing to increased costs, with an estimated additional $80 billion spent annually on enrollees compared to traditional Medicare participants, which raises premiums for all beneficiaries [6]