"The Part B Premium Ate Nearly a Third of Your Raise. The Medicare Part B premium climbed to $202.90 per month for 2026, a $17.90 increase from last year. Because Part B premiums are deducted directly from Social Security checks, that increase comes off the top before you see the money. For the average retiree, that $17.90 consumed 32% of the entire $56 raise."
"IRMAA Turns a Modest Raise Into a Net Loss. Medicare's IRMAA surcharge charges higher-income beneficiaries more for Part B. For a retiree in the second IRMAA bracket, Part B alone costs $284.10 per month for Part B alone - nearly $100 more than the standard premium. A 2.8% COLA cannot meaningfully offset that burden, especially since IRMAA thresholds are based on income from two years prior."
"Core PCE - the Fed's preferred inflation gauge - came in at 3.0% year-over-year as of December 2025, already outpacing the 2.8% COLA. Services inflation, which covers healthcare costs that hi[gher-income retirees face], represents a significant portion of actual cost increases."
Social Security recipients received a 2.8% cost-of-living adjustment for 2026, averaging $56 monthly increase. However, Medicare Part B premiums rose by $17.90 monthly, consuming 32% of the raise. After accounting for the deductible increase, the typical retiree nets approximately $38 monthly. Higher-income beneficiaries face additional burden through IRMAA surcharges, which can push Part B costs to $284.10 monthly—nearly $100 above standard premiums. IRMAA thresholds based on two-year-old income data create timing mismatches where retirees pay elevated premiums despite changed financial circumstances. Core inflation metrics exceed the COLA rate, indicating the adjustment fails to match actual cost increases.
#social-security-cola #medicare-premiums #irmaa-surcharges #retiree-purchasing-power #inflation-vs-benefits
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