The 3.6% COLA announced by the Social Security Administration (SSA) will not reach beneficiaries’ bank accounts in full. Most retirees have the Medicare Part B premium deducted directly from their Social Security check, and that premium is expected to rise in 2027.
The 2026 Medicare Trustees Report projects a standard Part B premium of $209.50 a month for 2027, compared with $202.90 in 2026. That is an increase of $6.60 a month.
How much of the COLA the premium would take
The average retired worker will receive about $75 more a month with the COLA. If the projection is confirmed, the higher Part B premium would absorb roughly 9% of that increase:
- Average retirement benefit | from $2,095 to $2,170 (+$75).
- Standard Part B premium | from $202.90 to a projected $209.50 (+$6.60).
- Estimated net increase | about $68 a month.
When the final premium will be known
The Centers for Medicare & Medicaid Services (CMS) usually announces the official Part B premium, the deductible and the income-related surcharges (IRMAA) in November. Until then, the $209.50 figure is only an estimate.
Beneficiaries with higher incomes pay more than the standard premium. In 2027, IRMAA will be based on the income reported on the 2025 tax return.
The hold harmless protection
Federal law includes a hold harmless provision: for most beneficiaries who have the premium deducted from their check, the increase in the Part B premium cannot be larger than the increase in their Social Security benefit. With a 3.6% COLA, this protection is not expected to apply to many people, but it prevents net checks from falling.
Low-income beneficiaries can get help paying the premium through the Medicare Savings Programs, which we analyzed in our article on Extra Help and the Part B premium.
The exact net amount will appear in each beneficiary’s COLA notice. Those who want to see it early can do so online if they meet the November 18 deadline. Medicare Open Enrollment, in which plans can be changed, runs from October 15 to December 7.
