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Medicare Costs Surge: Social Security Checks Shrink
25 Nov, 2025
Summary
- Medicare Part B premium rises to $202.90 monthly in 2026.
- This increase will consume about a third of Social Security's COLA.
- Millions of Social Security recipients face reduced benefits.
In 2026, Medicare beneficiaries will face a substantial increase in their Part B premiums, pushing the monthly cost above $200 for the first time. The premium for outpatient services will rise by 9.7% to $202.90, a notable jump that outpaces inflation. This increase is a significant concern for millions of Social Security recipients who depend on these checks for their daily living expenses.
The anticipated 2.8% cost-of-living adjustment (COLA) for Social Security in the coming year will be substantially eroded by the Medicare premium hike. Analysis suggests that nearly a third of the COLA will be consumed by this premium increase, effectively lowering the real benefit increase for many. Individuals with lower monthly Social Security payments could experience an effective COLA of zero, creating financial strain.
Officials attribute the rising Medicare premiums and deductibles to escalating healthcare costs. While cost-saving measures have been implemented, the underlying trend of increasing medical expenditures continues to affect seniors' budgets. This situation also mirrors rising healthcare costs for other demographics, including those with ACA plans and employer-sponsored insurance.
