Medicare premium hike for 2026 will cut heavily into COLA
FILE - Medicare health insurance card. Getty Images
Medicare premiums are increasing again in 2026.
The Centers for Medicare and Medicaid Services (CMS) announced this week that standard monthly premiums for its Part B plan are increasing by nearly 10% in the new year.
The jump outpaces both inflation and the cost-of-living adjustment (COLA) recently announced by Social Security.
Consumer prices increased in September by about 3% compared to a year ago, and the COLA increase is set for 2026 at 2.8%, which AARP estimates to be about an additional $56 per month.
But for some recipients, a good portion of that increase will go to increasing Medicare premiums.
What is Medicare Part B?
Big picture view:
Medicare Part B covers physicians’ services, outpatient hospital services, certain home health services, some medical equipment and certain other services.
Medicare Part B premium increase
By the numbers:
The standard monthly premium for Medicare Part B enrollees is increasing next year to $202.90. That’s an increase of $17.90 per month – nearly a 10% jump (9.7%) – from $185 in 2025.
Dig deeper:
The increase is the second largest dollar jump in the program’s history, behind a $21.60 increase in 2002. And it’s also nearly 3.5 times the Social Security raise for next year.
Additionally, the annual deductible for all Medicare Part B beneficiaries will be $283 in 2026, an increase of $26 from the annual deductible of $257 in 2025.
What they're saying:
CMS attributed the rising cost to "projected price changes and assumed utilization increases," and said the increase would have been even greater if the Trump administration hadn’t addressed spending on skin substitutes.
"If the Trump Administration had not taken action to address unprecedented spending on skin substitutes, the Part B premium increase would have been about $11 more a month," the agency said, adding that spending on the materials to replace skin functions or cover defects were set to decrease dramatically without affecting patient care.
RELATED: Social Security cost of living adjustment for 2026: How much you'll get
Social Security COLA 2026
By the numbers:
The Social Security COLA for 2026 will be 2.8%, the administration announced in October. It was slightly larger than last year’s increase, which was at 2.5%.
Big picture view:
The annual cost of living adjustment has averaged roughly 3.1% over the last 10 years.
About 70.6 million people participate in the Social Security program, with an average benefit of about $1,920 a month.
Raising healthcare costs
Big picture view:
Rising health care costs have become a major sticking point under Trump’s presidency. The historic 44-day shutdown was over expiring Affordable Care Act subsidies that put future health costs in limbo for millions of Americans.
Dig deeper:
Republicans say they want a broader overhaul of the health care system, though such a plan would be difficult to advance before next year.
What's next:
The ACA subsidies expire at the end of the year, and a vote in the Senate was promised in the negotiations to end the government shutdown.
Meanwhile:
People enrolled in the plans are already being notified of hefty premium increases for 2026.
The Source: Information in this article was taken from The Centers for Medicare and Medicaid Services and the Social Security Administration. Background information was taken from previous FOX Television Station reporting. This story was reported from Detroit.