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Medicare<\/a> costs, on the other hand, rose substantially. And that’s having a big impact on this year’s Social Security COLA.<\/p>\n What Social Security’s COLA and Medicare increases mean for your budget<\/p>\n When the Social Security Administration announced its 2026 COLA back in October of 2025, it said that following that raise, the average retirement benefit was likely to increase from $2,015 per month to $2,071 — a $56 boost. But a steep rise in Medicare costs is rendering that COLA less effective.<\/p>\n In January, Medicare Part B’s standard monthly premium rose from $185 to $202.90 — an increase of $17.90. Social Security recipients, in turn, are getting a much smaller average net COLA of about $38.<\/p>\n Social Security recipients who are enrolled in Medicare have their Part B premiums deducted from their benefits<\/a> automatically. So any time there’s an increase in the cost of Part B, it results in a smaller net raise.<\/p>\n It’s possible for an increase in Medicare Part B costs to actually wipe out a COLA completely. Thankfully, though, there’s a provision that prevents Social Security benefits from actually decreasing year to year due to a rise in the cost of Part B.<\/p>\n But still, many seniors on Social Security<\/a> may find themselves struggling due to their limited COLA. And let’s remember that higher Part B premiums aren’t the only change that came to Medicare this year.<\/p>\n Not only did the annual deductible for Part B rise, but the cost of care under Part A increased across the board as well. This year, Medicare enrollees will pay more to be admitted to the hospital, and they’ll also pay a higher daily coinsurance rate for an extended stay.<\/p>\n