Apart from their Social Security benefits, retirees can also expect their Medicare premiums to also increase next year, however it’s dividing retirees into two groups. There’s a rule referred as the “Hold Harmless” rule that aims to protect approximately 1 million retirees from the full monthly Medicare Part B premium increase in 2026. However, there are still millions of other people who will have to pay the entire amount.
As of 2026, Medicare Part B premiums will increase to $202.90 per month. In 2025, Medicare Part B premiums were $185, this works out to an increase of almost 10% more per month. there are many retirees living on fixed incomes, and this makes it even more difficult to manage their essential expenses.
What the “Hold Harmless” Rule Means
The “Hold Harmless” rule helps people who receive Social Security benefits and whose yearly cost-of-living adjustment (COLA) is too small to cover the higher Medicare premium.
Simply put, if your Social Security check isn’t enough for you to manage to pay the full Part B premium, then the government cannot reduce your Social Security check.
The 2026 COLA is fairly modest, therefore only approximately 1 million people will qualify for this protection. This simply means that their Medicare premium will be reduced or completely knocked off so that their Social Security payments are not affected.
Most Retirees Will Pay the Full Increase
However, the majority of Medicare users are not protected by the Hold Harmless rule. This includes:
- All those people who are fairly new to Medicare
- All those who are not receiving Social Security benefits
- People with higher incomes
- People paying IRMAA surcharges
- People whose COLA is large enough to manage the increase of the Medicare premiums
Majority of the Medicare beneficiaries will be required to pay the full increase in 2026.
Even while $17.90 might not seem like much, it adds up to more than $215 annually at a time when housing, food, transportation, and medical expenses are already on the rise.
Higher Deductible Adds More Pressure
The Medicare Part B deductible is also going up, rising from $257 in 2025 to $283 in 2026. This simply means that the senior population will pay $26 more out of their own pocket before Medicare starts to provide cover. There are many retirees who are already suffering health issues and even minor increases make it difficult to manage their healthcare expenses.
Why Prices Keep Going Up
There are many factors that are influencing the increase:
- There are more and more people making use of outpatient services.
- The cost of healthcare continues to increase.
- The cost of prescription medication is also increasing.
- Medicare is paying more to doctors and providers
Beneficiaries pay higher premiums and deductibles as a result of these increasing expenses.
What Retirees Should Expect
At the end of the day, approximately 1 million retirees will be protected as a result of the Hold Harmless rule, and this simply means that their Social Security checks will not be reduced. On the other hand, majority of retirees will actually have to pay the full Medicare Part B premium increase of $17.90. Additionally, before Medicare coverage begins, everyone will have to pay a higher deductible. Because of this, many people’s Social Security COLA rise will be partially offset by these growing Medicare expenses.
How Retirees Can Prepare
Retirees can follow these few steps to prepare:
- Go through your Medicare cover and make sure you are not paying any unnecessary fees.
- Be sure to keep money aside for the higher deductible.
- Make you understand your 2026 COLA and plan ahead carefully.
Beneficiaries should keep themselves informed and updated with verified information so that they are able to make proactive decisions.