2027 Social Security COLA and Medicare Part B premium, Digi Mart USA News: Social Security recipients are getting a raise for 2027, which will be welcome news for retirees whose budgets have been strained by groceries, rent, insurance, and medical costs. The increase, however, may be partly offset by a projected rise in Medicare Part B premiums.
The Social Security Administration set the 2027 cost-of-living adjustment (COLA) at 3.6% on October 14, 2026. The 2026 Medicare Trustees Report projected the standard Medicare Part B premium would rise to $209.50 in 2027 from $202.90 in 2026.
The COLA raises monthly Social Security benefits beginning with January payments for most beneficiaries. Recipients of Supplemental Security Income will see the increase with the January benefit payment, which arrives December 31, 2026, because January 1 is a federal holiday.
For the average retired worker, the 3.6% COLA would raise the monthly benefit by about $75, from roughly $2,095 to $2,170. Individual increases will vary, because the COLA is applied as a percentage of each person’s current benefit.
Smaller benefits will see smaller dollar increases, and larger benefits will see larger ones.
Medicare Part B covers doctor visits and other outpatient care. For many retirees, the monthly Part B premium is deducted directly from the Social Security check before the money reaches the bank.
If the projected $209.50 premium holds, the increase from $202.90 would be $6.60 per month.
That increase does not erase the COLA for everyone, but it can reduce the net gain for anyone who pays the standard Part B premium through Social Security. Using the example above, a $75 benefit increase and a $6.60 premium increase would leave a net payment increase of $68.40, assuming other deductions stay the same.
Retirees who do not have Part B deducted from their Social Security checks will see a different effect. They may pay the premium directly to Medicare, have it deducted from another retirement benefit, or qualify for a state Medicaid program that pays it through a Medicare Savings Program.
A Part B increase tends to hit hardest when a benefit is modest. A $6.60 premium increase has a larger impact when the COLA is $30 than when it is $100.
Rent, prescriptions, utilities, and groceries are paid in dollars, not percentages, which is why the headline COLA can sound better than the net result.
Higher-income retirees may face an additional charge. If income is above Medicare’s income-related monthly adjustment amount (IRMAA) thresholds, they pay an extra amount for Part B, which could make their Medicare deduction larger than the standard premium.
The rules state that the protection that limits premium increases generally does not apply to people who are new to Part B, pay IRMAA, pay premiums directly rather than through Social Security or Railroad Retirement benefits, or have premiums paid by a state Medicaid program.
The Social Security Administration typically releases the COLA in October, after the third-quarter inflation data used in the formula is available. The annual COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers.
If the final 2027 Part B premium differs from the Trustees Report projection, actual checks could differ as well.
Annual COLA notices show new monthly benefit amounts and any deductions. For Medicare enrollees, the 2027 premium amount is expected to be available through the my Social Security Message Center starting in late November.
Online account holders with paperless notices can access their COLA notice starting in late November, up to three weeks before a paper notice arrives.
When 2027 benefit information arrives, retirees should look for three figures: the gross Social Security benefit, the Medicare Part B premium, and the net payment. Comparing the 2026 net payment with the 2027 net payment gives the clearest view of the actual monthly change.
Eligible people with limited income and resources can get help paying Part B premiums through Medicare Savings Programs, which are administered through state Medicaid offices. Retirees whose income has dropped because of retirement, reduced work hours, or another qualifying life event can ask Social Security to reconsider IRMAA using Form SSA-44.
