A higher Medicare premium set to go into effect in 2026 will push the monthly charge above $200 for the first time, with the increase likely to erode next year’s cost-of-living increase for millions of Social Security recipients.
The premium for Medicare’s Part B, which covers doctor visits and other outpatient services, will rise 9.7% to $202.90, an increase of $17.90 from the current $185 monthly cost, the Centers for Medicare & Medicaid Services said earlier this month. It’s the largest increase since 2022, when the Part B premium jumped 15%.
The Part B deductible — the amount seniors must pay out of pocket before their coverage kicks in— is also rising about 10%, jumping to $283 next year from this year’s $257.
Medicare Part B premiums, deductibles and coinsurance rates are determined under a formula in the Social Security Act.
The Part B premium, which is deducted automatically from seniors’ monthly Social Security checks, is rising at a rate that’s three times that of inflation, partly due to a rise in underlying health care costs, Anne Montgomery, senior health policy expert at the National Committee to Preserve Social Security and Medicare (NCPSSM), said in a blog post. The Medicare premium increase means that seniors may not have much room to keep up with inflation, Max Richtman, the president and CEO of the same group, told CBS News.
“So many rely on [Social Security] for all or most of their income,” he said. “This is gonna hurt.”
The Social Security Administration set next year’s cost-of-living increase at 2.8%, which will boost the average Social Security paycheck by $56 to about $2,071 per month.
The Medicare Part B premium hike will consume about a third of next year’s COLA, effectively lowering the rate to 1.9% — far below the current inflation rate of 3%, according to NCPSSM’s analysis. People with lower monthly benefits could even see an effective COLA of zero, the group said.
A spokesperson for the Centers for Medicare & Medicaid Services (CMS) told CBS News that the Medicare premium increase would have been significantly higher if the administration had not taken cost-saving measures, such as “reigning in the fraudulent use of skin substitutes.”
“The Trump Administration is preserving Medicare by keeping the program affordable and sustainable for future generations,” the spokesperson said in an email.
Rising health care costs
According to the CMS spokesperson, the main factor behind the Medicare premium and deductible increases is the projected growth in overall health care spending.
