Social Security benefits will rise 3.6% in 2027 due to the cost-of-living adjustment, boosting the average monthly check from $2,095 to about $2,170, or roughly $75 more per month. Medicare Part B premiums will likely increase to $209.50 from the 2026 standard of $202.90, meaning only $6.60 of that benefit bump goes toward actual cash in your pocket.
The hold-harmless rule protects most Social Security recipients from losing benefits when Medicare premiums rise. This rule caps how much Part B premiums can increase in a year to match your COLA increase. If your benefits go up by $50, Part B premiums cannot rise by more than $50.
High-income earners face an exception to this protection. Someone collecting $4,000 per month in Social Security will see their benefit increase by $144, but Part B premiums still only rise $6.60. Higher earners pay additional amounts on top of the standard Part B premium based on income. Part D premiums add an extra cost for those earning above certain thresholds, capping out at an additional $91 per month for the highest earners.
Part D and Medicare Advantage premiums are not automatically deducted from Social Security checks. You must request that Medicare Advantage premiums be deducted, or pay the bills when they arrive. For Part D, you can choose to pay your plan provider directly instead of having it withheld.
Your Social Security benefits letter arrives in December and shows your exact monthly amount after Medicare deductions are applied. Reviewing this letter helps you plan budget adjustments if needed.