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Your Social Security benefit won’t be cut in 2026 - The Street
If you are worried about your Social Security payment going down in 2026, you likely should not be. Your monthly benefit is based upon your lifetime earnings while working and, except for cost-of-living adjustments (increases), your monthly payment will not change. That, of course, is good news for the many who rely on Social Security as a “major” part of their retirement income. There is, however, a potential “fly in the ointment” — and that is your Medicare premium.
Medicare premiums are automatically deducted from each person’s Social Security benefit, so an increase in the standard monthly Medicare Part B premium could, indeed, affect the net amount of your Social Security payment. In other words, your SS payment will likely go up for inflation next year, but an increase in Medicare’s Part B premium might cause your net SS payment to be less. And guess what? Medicare is predicting an increase of $21.50 to the Part B premium, making it about $206.50 instead of $185!
Fortunately, most Social Security beneficiaries will be protected by Social Security’s “Hold Harmless” provision, a rule which says that your Social Security payment can’t go down as a result of an increase in your Medicare premium. That will, however, not prevent any COLA increase you are entitled to from being used to offset the increase in your Medicare premium. In other words, your SS COLA increase will be applied to the Medicare premium increase, so as to keep your monthly SS benefit the same. And that also means that you will be paying a Medicare premium which is less than the usual standard monthly amount, at least for a while (until your monthly SS COLA is enough to restore your Medicare premium back to the standard amount).
As described in this article by Christy Rakoczy at The Street, the Hold Harmless provision does not apply to those first enrolling in Medicare, nor to anyone who is affected by Medicare’s Income Related Monthly Adjustment Amount (IRMAA) provision. But for most Social Security recipients, the “hold harmless” provision will likely mean no decrease in their Social Security benefit, in spite of the increase in Medicare premiums. Click here to read more.
Also, if you’re unsure about how these basics apply to you, or if you have any questions about your individual situation under Social Security, note that the AMAC Foundation provides a free-to-the-public advisory service to help Americans navigate the complexities of this program. All questions are answered quickly, at no charge. Learn more about it here…
If a huge number… if not the majority… of people relying on Social Security, are burdened by the Medicare deduction: why is NOTHING being done to help with this Medicare issue?
Is there even anything in the works?
Hi Kathryn,
Actually, the majority of people do not struggle to pay the Medicare premium because it is deducted automatically from their Social Security payment. Medicare Part B (the Part for which a premium is paid) is entirely voluntary, but not having healthcare insurance is not a journey most are willing to take. Also, it’s important to know that Part B premiums actually only cover about 25% of the cost of running the Medicare Part B program (the remaining cost is absorbed by the Federal Government). So Medicare Part B is actually a pretty good deal, considering that it covers about 80% of most medical expenses. And, for clarity, Medicare Part A is free to everyone eligible to collect Social Security (Part A covers inpatient hospital care; Part B covers outpatient medical services). Also, there are other government programs available to help those who are financially needy pay for their medial costs. Most states offer a “Medicare Savings Program” which provides financial assistance for those who cannot afford to pay their Medicare premiums and costs, as well as a “Medicare Extra Help” program which provides financial assistance for covering prescription drug costs for the needy. Fact is, there is a lot of help available to those truly in need, and Medicare costs are already largely paid for by the federal government.
Having provided that clarity, please know that we very much appreciate your feedback and AMAC Membership.
Best regards,
Russell Gloor
Certified Social Security Advisor
The AMAC Foundation