Social Security COLA vs Medicare Part B: What You Actually Keep

In October, Social Security announces next year’s raise. Before you spend it, here is the part that gets announced a month later and quietly takes some of it back.

The raise: the COLA

That yearly raise is the COLA — the cost-of-living adjustment. It lands in October and comes out as a percentage.

For 2026 the COLA came in at 2.8%. Say your check is around $2,000 a month, which is close to average. That works out to about $56 more.

The part that takes some back

Your Medicare Part B premium comes straight out of your Social Security check before you ever see it — and Part B went up for 2026 too. It rose from $185 a month to $202.90. That is about $18 more going out every month.

So on that $2,000 check: about $56 more from the raise, about $18 of it straight back out for Part B. What actually landed was closer to $38 a month.

Here is the part nobody says out loud

The raise is a percentage, so it is bigger on a bigger check. But the Part B increase is the same flat $18 for everybody.

So the smaller your check, the bigger that bite feels. On a $1,200 check, the raise was about $34 — and Part B took roughly $18 of it. More than half the raise was gone before it hit the account.

Two announcements, one check

That is why the raise never feels like the headline. The COLA is announced in October and everyone talks about it. The Part B premium is announced in November, and that one is a much quieter story.

Looking ahead to 2027

Early projections have Part B rising about six or seven dollars a month, rather than the eighteen it jumped this year. That would be a much smaller bite. But that is a projection, not the number — it does not become real until November.

How to work out your own real raise

When you hear the COLA percentage in October, do not spend it yet. Take your own monthly check and find that percentage of it — that is your raise in dollars. Then in November, when the new Part B premium is announced, see how much it went up from $202.90. Subtract that increase. What is left is your real raise.

Common questions

What is the 2026 Social Security COLA?

2.8%.

How much did Medicare Part B go up in 2026?

From $185 to $202.90 a month — an increase of about $18.

Why does my Social Security raise feel smaller than announced?

Because the Part B premium is deducted from your check, and it is a flat dollar increase for everyone while the COLA is a percentage. Smaller checks lose a larger share.

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I am Rick Caso, an independent Medicare advisor with Falcon Life and Health, based in Port Charlotte, Florida and licensed in 24 states. If you want to walk through your own situation, call or text 941-412-2362.