Medicare costs are projected to increase in 2026, and that directly affects your Social Security take-home.
The standard Medicare Part B premium is widely expected to land around $206.50/month (up from roughly $185 in 2025), with the Part B deductible near $288.
Part D premiums and deductibles are also trending higher, and the new annual out-of-pocket cap for Part D drugs is set around $2,100.
At the same time, the 2026 Social Security COLA is tracking near 2.7%, meaning a noticeable slice of that raise could be offset by higher health-care costs.
Final amounts will be confirmed by CMS later in the year, so treat the figures below as the latest projections.
What’s Changing in 2026 (Projected)
- Part B premium: ~$206.50/month, up about $21.50 year over year.
- Part B annual deductible: ~$288.
- Part D base premium (national average): around $39/month; actual plan premiums vary by region.
- Part D maximum deductible: about $615.
- Part D out-of-pocket cap: $2,100 for 2026 (indexed from the $2,000 cap that began in 2025).
- IRMAA surcharges: higher-income enrollees (projected $109,000 single / $218,000 MFJ and above) will pay more for Parts B and D.
Snapshot of Key Amounts (Projected)
| Item | 2025 | 2026 (Projected) | Change |
|---|---|---|---|
| Part B standard premium | ~$185/mo | ~$206.50/mo | +~$21.50 |
| Part B deductible | $257 | ~$288 | +~$31 |
| Part D base premium (avg.) | ~$36.78 | ~$38.99 | ↑ modest |
| Part D max deductible | $590 | ~$615 | +~$25 |
| Part D OOP cap | $2,000 | $2,100 | + $100 |
| Social Security COLA | 2.5% (2025) | ~2.7% (est.) | ↑ slight |
How This Affects Your Social Security Check
Most retirees have Part B (and any IRMAA charges) deducted from their Social Security. If your gross benefit rises ~2.7% in January 2026, the bigger Part B premium and higher Part D costs can trim your net deposit.
For many beneficiaries, roughly one-third to two-fifths of the COLA may be absorbed by rising Medicare expenses—especially if you take multiple prescriptions or fall into a higher-income bracket that triggers IRMAA.
A quick example
- Suppose your gross Social Security is $1,900/month. A 2.7% COLA adds about $51.
- If Part B rises ~$21.50, and your Part D premium ticks up a few dollars, your net increase might look closer to $25–$30, depending on your plan and medications.
What Higher-Income Retirees Should Know (IRMAA)
If your 2024 MAGI (used for 2026 billing) exceeds about $109,000 (single) or $218,000 (married filing jointly), you’ll owe IRMAA surcharges on Parts B and D.
These surcharges are added to the standard premium across several brackets.
If your income has dropped due to a qualifying life event—for example retirement—you can file for a reconsideration to reduce or remove IRMAA.
Smart Moves Before Open Enrollment
- Shop your Part D plan during Medicare Open Enrollment (Oct. 15–Dec. 7). Formularies, preferred pharmacies, and premiums change yearly.
- Use the $2,100 Part D cap to your advantage: ask your pharmacist or plan to map when you’ll reach the cap based on your prescriptions.
- Check Extra Help (Low-Income Subsidy) eligibility—this program can lower premiums, deductibles, and copays.
- Manage taxable income where possible (Roth conversions timing, RMD strategies) to avoid or reduce IRMAA in future years.
- Compare Medicare Advantage vs. Medigap + Part D based on doctors, travel, and total expected costs—not just premiums.
Heading into 2026, prepare for higher Medicare bills—notably a Part B premium near $206.50 and a deductible around $288—which will soften the impact of a projected ~2.7% COLA for many beneficiaries.
The best defense is a quick review during Open Enrollment: re-check your Part D plan, confirm any IRMAA exposure, and look into Extra Help if you qualify.
A little planning now can keep more of your Social Security in your pocket next year.
FAQs
When will the 2026 Part B premium be final?
CMS typically finalizes premiums in the fall (October/November). Until then, treat 2026 figures as projections.
Does the $2,100 Part D cap mean I pay nothing for drugs after that?
After hitting the $2,100 out-of-pocket cap on covered Part D drugs, you pay $0 for the rest of the year for covered medications (premiums still apply).
Why did my Social Security deposit go up less than my COLA?
Because Medicare Part B (and IRMAA, if any) is deducted from your benefit. A higher premium reduces the net increase you see in your bank account.