The yearly Social Security cost-of-living adjustment, or COLA, sounds like a clean raise. The deposit in your bank account can tell a quieter story. For people who have Medicare Part B premiums taken out of their benefit, a higher premium can shrink the raise you actually see.
Two federal agencies drive this. The Social Security Administration handles benefit payments and the COLA. The Centers for Medicare & Medicaid Services, or CMS, publishes Medicare premiums and deductibles. Their numbers meet in one monthly payment.
Why the two numbers get tangled
A COLA is meant to help benefits keep pace with rising prices. AARP has a plain-language explainer on how Social Security benefits are adjusted for inflation. The adjustment raises your gross monthly benefit by a percentage.
Medicare Part B covers physicians' services, outpatient hospital services, certain home health services, durable medical equipment and some other services Part A does not. Part B carries a monthly premium. Many people who collect Social Security have that premium deducted from their payment, so the amount deposited is lower than the gross benefit.
Here is a simple example with made-up numbers. Say your gross check rises by $50 and your Part B premium rises by $20. Your deposit grows by $30, not $50. The real figures depend on your own benefit and your own premium.
The numbers this article cannot give you
The core numbers are the 2026 standard Part B premium and the 2026 COLA percentage. The sources behind this piece do not state either one. The CMS fact sheet text we reviewed cuts off before the Part B figures appear, and the COLA percentage is not stated in the material we reviewed. Rather than guess, we are leaving them out.
You can find both from the agencies directly. CMS publishes the Part B premium and deductible each year, and the Social Security Administration announces the COLA at ssa.gov. Put the two figures next to your own gross benefit and you can estimate your net change yourself.
What the official disclosures do say
On November 14, 2025, CMS released its 2026 Medicare Parts A and B premiums and deductibles fact sheet. It says Part B premium, deductible and coinsurance rates are set each year under a formula, though the text we have does not lay out that formula.
The sheet does give Part A figures. Part A is a separate piece of Medicare that covers hospital stays, so these numbers do not change a Part B deduction. They still show how costs moved this year:
- The inpatient hospital deductible is $1,736 in 2026, up $60 from $1,676.
- Hospital coinsurance for days 61 through 90 is $434 per day, up from $419.
- Coinsurance for lifetime reserve days is $868 per day, up from $838.
- Skilled nursing facility coinsurance for days 21 through 100 is $217 per day, up from $209.50.
Most people pay no Part A premium. CMS says about 99 percent of beneficiaries have at least 40 quarters of Medicare-covered employment, as determined by the Social Security Administration. Those who must buy Part A pay $311 a month at the reduced rate, up $26, or $565 at the full rate, up $47.
Can a premium increase wipe out a raise?
Consumer explainers, including a SmartAsset article on how a Part B increase may offset the COLA, treat this as a real budgeting concern. The sources we reviewed do not explain the mechanics, so treat the points below as questions to confirm, not settled facts.
Some explainers describe a protection often called a hold-harmless rule. The general idea is that for certain beneficiaries, a Part B premium increase should not reduce the Social Security payment they received the year before. We could not confirm who qualifies or how it is applied. People who are newly enrolled or who pay higher income-related premiums may be treated differently. Ask the Social Security Administration how the rules apply to you.
Looking ahead to 2027
AARP has published an article titled Medicare Part B Premium May Rise in 2027, and Kiplinger has one titled 9 Changes to Social Security in 2027. We could not review the full text of either, so we cannot say what figures or changes they describe.
The word "may" in that headline matters. Treat any projection as an estimate, not a budget line. Official numbers come from CMS and the Social Security Administration, and they usually arrive in the fall before the new year starts.
How to check your own check
Start with paperwork from the Social Security Administration. The agency generally sends a yearly letter about benefit changes. Check ssa.gov to confirm when yours arrives and what it covers. A my Social Security online account may also show your payment details.
Compare last year's gross benefit with this year's. Then find the line for the Part B premium. Subtract it from the gross amount and see if the result matches your deposit. If it does not, contact the Social Security Administration through ssa.gov or its published phone number. Do not give personal or bank details to anyone who contacts you first, or to a service that charges a fee to review your benefits.
Questions to ask the Social Security Administration
Bring your latest notice and ask:
- Is my 2026 Part B premium fully reflected in my monthly deduction?
- What is the dollar difference between my gross COLA and my net deposit?
- Do I pay an income-related amount on top of the standard premium?
- If the premium rose by more than my COLA, what rules limit a drop in my payment, and do they apply to me?
Review these numbers once a year. Your spending plan should rest on the deposit, not the headline percentage.
Please seek a professional. This article is general information, not financial, tax or insurance advice. Please seek a licensed financial, tax or insurance professional about your own situation.
