Originally published on 10/28/25

Beginning next year, people collecting Social Security will see a 2.8 percent increase in their monthly checks thanks to the 2026 cost of living adjustment (COLA). However, since that announcement, several experts revealed that not everyone will feel the financial benefits due to the expected increase in Medicare costs. We share what you need to know about this, including if you can avoid it, below. 

What to know about the Social Security COLA increase 2026

The 2026 COLA increase was announced in the middle of October, and is supposed to help people on the government program feel financially secure during this time of tariffs and inflation.

And while the 2.8 percent increase, which is about $56, can help cover the cost of something like groceries, experts are worried that it won’t be enough to cover Medicare—a program that most people collecting Social Security use—resulting in their monthly COLA being brought down to about zero. 

“The numbers look better than they feel,” Mary Johnson, an independent Social Security and Medicare policy analyst, told Newsweek. “You get a raise on paper, but by the time Medicare takes its cut, most people are barely breaking even.”

According to recent reports, Medicare Part B is expected to increase by $21.50 in 2026, bringing the monthly total to $206.50. Part D is also expected to increase by an average of $50 a month, depending on how much you use the prescription drug coverage. The current average rate for this plan is $35 a month. 

“If your COLA goes up $56 and Medicare and drug costs rise by $50 or more, your quality of life doesn’t improve—it shrinks,” Johnson said. 

Other experts like Ramsey Alwin, CEO of the National Council on Aging share this concern saying , “COLA might reflect the inflation rate, but it is woefully insufficient for older Americans who already have high health care costs and are facing even greater increases in their Medicare costs in 2026.” 

“This COLA will not even cover the projected increases in Medicare premiums and deductibles, which are expected to range between 4 percent and 12 percent,” he continued. “Once again, older adults will have to make heart-wrenching decisions about whether to spend their fixed incomes on health care, food, or housing.” 

Can you avoid the increase in Medicare costs and keep your entire COLA? 

For people on Social Security, Medicare Parts B and/or D wanting to avoid the potential elimination of their COLA, there is a way to do so. It’s called the hold harmless prevention rule, and by enrolling in it, you can help ensure that your Medicare Part B premium doesn’t reduce your net Social Security payment. 

It can also help ensure that if the COLA for the next calendar year isn’t enough to cover a Medicare price increase, the cost for Part B gets reduced to a more feasible amount each month. 

Most people in America do qualify for this rule; however, there are a few exceptions. These include people who are enrolling in Medicare Part B for the first time, people who pay an income-related monthly adjustment amount premium, people who pay premiums directly and people who use both Medicare and Medicaid.

In order to enroll in the hold harmless prevention rule, Medicare users must have their Part B premiums deducted from both their December and January Social Security payments, according to the Social Security Administration Website. 

Even with that, though, it remains unclear if the hold harmless prevention rule and COLA will be enough for people on Social Security to fund their everyday lives, with Kim Scouller, a financial professional with World Financial Group, telling USA Today. “Even if your income goes up a few percent, inflation compounds quietly every year—working against you the same way compound interest works for you. When prices rise faster than benefits, every dollar loses a bit of its power.”

Link to original: https://www.womansworld.com/life/money/social-security-cola-how-medicare-affects-your-check