Medicare premiums are set to rise again next year, meaning many older adults will see more of their Social Security checks go toward healthcare costs, according to new projections released by the Centers for Medicare and Medicaid Services (CMS).
On Nov. 14, the agency announced that the standard monthly premium for Medicare Part B — which covers outpatient care, doctors’ services, durable medical equipment, and preventive services — will rise from $185 to $202.90 next year. That’s up $17.90, or 9.7 percent, from 2025. According to MarketWatch, this marks the first time premiums topped $200 a month.
This price hike is expected to bring in about $14 billion for Medicare as the program faces rising healthcare costs and a growing number of older Americans who depend on it. But for the seniors who rely on Medicare every day — many of whom live on fixed incomes — that increase means their monthly budgets will feel even tighter.
Here’s a closer look at the change — and when it could impact you.
Why are premiums rising?
According to CMS, the premium hike really comes down to one thing: higher costs across almost everything Medicare pays for. Outpatient hospital care — one of Medicare’s biggest expenses — is projected to grow significantly next year. And the Medicare Advantage market, where more than half of all beneficiaries now get their coverage, is also seeing rising costs. (CMS didn’t provide specific percentages for these increases.)
But the Part B premium jump could have been even bigger. The agency said that without a recent change in how Medicare pays for certain skin-substitute products — biologic or synthetic materials used to treat chronic wounds like diabetic foot ulcers — premiums would have climbed by roughly $11 more per month.
The Trump administration reclassified these products so they aren’t billed separately, a move CMS estimates will reduce Medicare spending on them by nearly 90 percent in 2026.
What does this mean for Social Security?
For most people on Medicare, Part B premiums are deducted directly from their monthly Social Security checks. So when premiums rise, the amount seniors actually receive each month shrinks — unless the annual cost-of-living adjustment (COLA) is big enough to make up the difference.
Beginning in January 2026, the Social Security Administration said beneficiaries will receive a 2.8 percent cost-of-living adjustment — roughly $56 more per month on average. But with Part B premiums climbing by nearly $17.90, a good chunk of that won’t be reflected in their checks, effectively cutting the increase to about $38.10 on average. And for those whose COLA comes in below average — which is common for people with lower benefits — the premium hike could take an even bigger bite out of their monthly income.
The good news is that Social Security does have a built-in protection for some seniors with lower monthly benefits. A hike this big is expected to activate the “hold harmless” rule, which keeps Social Security checks from shrinking when Part B premiums climb. Independent Social Security and Medicare policy analyst Mary Johnson told USA Today that this protection generally applies to people who receive about $640 a month or less.
Still, the rule doesn’t erase premium hikes entirely. “If individuals have other automatic deductions such as for Medicare Advantage or Part D premiums, increases in those premiums could reduce Social Security benefits,” Johnson said.
And what about older Americans?
For the millions of seniors on traditional Medicare, higher premiums are one more hit to their monthly funding, especially with groceries, rent, utilities, and prescription drugs already costing more.
According to the health policy outlet Healthcare Dive, these higher costs could also push more people toward Medicare Advantage plans, which are run by private insurers. Many MA plans advertise $0 monthly premiums — a major draw for older adults trying to save money — and unlike traditional Medicare, they include an annual out-of-pocket cap, which can appeal to people who expect high medical expenses.
But the trade-offs can be significant. For example, MA plans often have narrower provider networks and more restrictions on which doctors or specialists patients can see — limitations that don’t typically exist in traditional Medicare.
And all of this is happening as older adults need more care, not less. Seniors tend to rely heavily on outpatient visits, prescription drugs, and ongoing treatment for chronic conditions — the very services getting more expensive. When prices rise, it becomes harder to keep up, and research shows the impact is real: Many people start putting off appointments or skipping treatments altogether. In fact, a Kaiser Family Foundation study found that 36 percent of U.S. adults delayed or avoided needed care in the past year because they couldn’t afford it — a trend that’s especially troubling as healthcare becomes more demanding with age.
