Seniors on Social Security got a bit of mediocre news toward the end of 2025. They learned that their benefits would increase by 2.8% in 2026.
This year's 2.8% cost-of-living adjustment, or COLA, is a bit larger than the 2.5% raise seniors got last year. But that raise may not go very far for the typical Social Security recipient. And part of the reason boils down to the fact that Medicare costs are rising substantially this year. Here are three specific increases that may hurt Social Security beneficiaries.
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1. A higher Part B premium
Although Medicare Part A, which covers hospital care, is free for most enrollees, seniors have to pay a premium each month for Part B, which covers outpatient care. This year, the standard monthly Part B premium is $202.90, up from $185 in 2025. And you can bet on that $17.90 increase eating heavily into the typical senior's Social Security COLA.
2. A higher Part A inpatient deductible
Even though most Medicare enrollees get Part A premium-free, there are other costs associated with Part A coverage. If you're admitted to the hospital, there's an inpatient deductible you need to cover each time that happens.
In 2025, the Part A inpatient hospital deductible was $1,676. This year, it's up to $1,736. For seniors who get most or all of their retirement income from Social Security, even a single hospital stay could be financially catastrophic.
3. A higher Part A daily coinsurance rate
That $1,736 inpatient deductible for a hospital stay? It only covers your first 60 days of care. If you end up in the hospital beyond the 60-day mark, you'll be forced to share in the cost.
The daily hospital coinsurance rate for days 61 through 90 of a hospital stay is $434 this year for Part A enrollees, up from $419 in 2025. If your stay lasts longer than 90 days, you'll have to dip into your lifetime reserve days. And in that case, you're looking at a daily coinsurance rate of $868, up from $838 last year.
Brace for higher costs
Unfortunately, higher Medicare costs could hurt a lot of seniors on Social Security this year. If your monthly benefits are your primarily or sole source of retirement income, make sure to budget carefully so you're able to cover your health-related needs.
You may also want to consider getting a part-time job to boost your income in case your costs under Medicare come in higher than expected. Earning even a few extra hundred dollars a month could buy you more breathing room at a time when Medicare expenses are up across the board.
