The cost of Medicare Part B rose substantially in 2026.
Social Security’s modest cost-of-living adjustment isn’t enough to absorb it.
Seniors who have only Social Security for income may be hurting right now.
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For retirees on Social Security, one of the biggest expenses they face annually is healthcare. And the tough thing is that healthcare costs can be unavoidable to a large degree.
If you need a hospital stay or certain medications, you can’t easily say “no thanks.” So it’s important to budget for medical costs, especially if you get most or all of your retirement income from Social Security.
But in recent years, Social Security recipients have been clobbered by increasing healthcare costs. And this year is no exception.
Right now, Medicare premium hikes are hurting retirees left and right. And it’s not a problem that’s likely to go away anytime soon.
Most Medicare enrollees do not pay a premium for Part A, which covers hospital care. But there’s a monthly premium to pay for Part B, which covers outpatient care.
This year, the standard monthly Part B premium rose from $185 to $202.90. And that $17.90 increase is hitting a lot of seniors hard.
In 2026, Social Security benefits got a 2.8% cost-of-living adjustment (COLA). For the average recipient, that should’ve amounted to an extra $56 per month.
But because the cost of Medicare Part B rose so drastically, Social Security recipients are basically losing one-third of their COLA to those premium hikes alone.
And it’s not just Medicare premiums that are more expensive this year. The annual deductible for Medicare Part B rose from $257 in 2025 to $283 in 2026.
That may not seem like such a big deal. But remember, on top of premium hikes and higher deductibles, many seniors on Social Security may be looking at larger healthcare bills based on changes to their specific Medicare Advantage or Part D drug plans. And again, a lot of those costs may be non-negotiable.
Because healthcare costs, including Medicare, have a tendency to rise from year to year, it’s best to have income outside of Social Security to pay for them.
The reality is that healthcare cost increases tend to outpace the program’s annual COLAs. So the best way to keep up is to have other income to rely on.
That income could come from savings, a part-time job, or something else. But it’s important to recognize that when it comes to rising healthcare costs, Social Security tends to do a poor job of keeping up.
Just as it’s important to have non-Social Security income at your disposal, it’s also important to lower your Medicare costs if you can.
The cost of Part B may not be negotiable. But you can shop around for a new Part D or Medicare Advantage plan every year during open enrollment. Switching plans as your needs change, or as plan costs change, is a good way to limit your health-related spending.
Also, don’t discount the financial benefit of taking good care of your health. A physician-approved diet and exercise routine could help you avoid costly treatments that eat heavily into your retirement income and cause you a world of stress.
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