Healthcare costs are eating into Social Security checks

Core Insights - Healthcare costs are significantly impacting Social Security income for retirees, with out-of-pocket expenses being much higher than anticipated [1][2] - A substantial portion of retirees' income is consumed by healthcare expenses, with about one-third of Social Security income and nearly a quarter of total income going towards these costs [2] - Social Security serves as the primary income source for many seniors, with approximately 50% relying on it for at least half of their income, and 27% depending solely on it [3] Healthcare Costs and Social Security - The average monthly Social Security benefit is estimated at $2,071, but women receive about 25% less than men due to various factors including lower lifetime earnings [3][4] - Healthcare costs are projected to continue rising, with Medicare premiums increasing significantly, outpacing inflation [5][7] - Medical inflation is expected to grow at a rate of 5.8%, which is more than double the projected 2.4% increase in Social Security cost-of-living adjustments [8][9] Future Projections - The financial burden of healthcare on Social Security checks is anticipated to worsen, with experts indicating that retirees will face increasing medical costs in the coming years [5][8] - Specific examples include the monthly Part B premium rising to $202.90 in 2026, reflecting a $17.90 increase from the previous year, and the annual deductible increasing to $283 [7]