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Costs & IRMAA

August Inflation Data Points to a Social Security Cost-of-Living Adjustment of About 3.5 Percent for 2027, With Implications for Medicare Costs

The Bureau of Labor Statistics released August 2026 price data on September 11, and two months of readings now put the 2027 Social Security cost-of-living adjustment on track for roughly 3.5 percent. For Medicare beneficiaries, the COLA shapes both their benefit check and, through a federal protection called hold harmless, how much their Part B premium can legally rise.

By the Goodsurance editorial teamSeptember 12, 2026

The Bureau of Labor Statistics released its August 2026 Consumer Price Index report on September 11, showing that the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W, rose 3.5 percent compared with August 2025. That reading is the second of three monthly figures federal law uses to calculate the Social Security cost-of-living adjustment, or COLA, for 2027. With July and August data now in, the 2027 COLA is tracking at roughly 3.5 to 3.6 percent. The Social Security Administration will announce the official figure on October 14, after September CPI-W data is released.

For Medicare beneficiaries, the COLA has two direct consequences. First, a federal hold harmless rule prohibits the standard Medicare Part B monthly premium from rising more, in dollar terms, than a beneficiary's COLA increase, for most enrollees who have premiums withheld from a Social Security payment. The standard Part B premium stands at 202 dollars and 90 cents per month for 2026, according to CMS. The 2027 premium will be announced in November. Second, the income thresholds that determine who pays Medicare's high-income surcharges, called IRMAA, are adjusted annually by inflation. The 2026 thresholds begin at 109,000 dollars for single filers and 218,000 dollars for joint filers, according to CMS. The 2027 thresholds will also be released in November.

Beneficiaries who expect a significant change in income between 2025 and their most recent tax year on file may request that SSA use more recent income data to recalculate their IRMAA.

August price data puts the 2027 Social Security COLA on track for about 3.5 percent. Medicare Part B premium and IRMAA changes follow in November.

In plain words

The government released price data on September 11 showing prices are about 3.5 percent higher than last year. This matters for people on Medicare because Social Security payments are set to go up by a similar amount in 2027. That annual raise is called the COLA. A law also limits how much Medicare Part B costs can go up for most people who get Social Security. Both the official 2027 Social Security raise and the official Medicare cost changes will be announced in October and November.

Understand the basics first

Source: Bureau of Labor Statistics
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