Costs & IRMAA
Social Security Confirms 3.6 Percent Benefit Increase for 2027, the Largest Since 2023
The Social Security Administration released its official cost-of-living adjustment today, finalizing a figure that carries direct implications for what Medicare beneficiaries pay for Part B coverage next year.
By the Goodsurance editorial teamOctober 14, 2026
The Social Security Administration announced on October 14 that nearly 72 million Social Security beneficiaries will receive a 3.6 percent cost-of-living adjustment beginning in January 2027, the largest benefit increase since 2023. Average monthly retirement benefits will rise by about 75 dollars. About 7.3 million people receiving Supplemental Security Income will see their payments increase starting December 31, 2026.
The adjustment is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers for the third quarter of 2026. SSA reported that index averaged 328.746 for the third quarter, compared to 317.265 in the prior comparison period, a difference of 3.6 percent.
Social Security benefits rise 3.6 percent in January 2027. Most Medicare enrollees pay Part B premiums directly from those checks. The 2027 Part B premium amount is still coming.
The COLA matters for Medicare beneficiaries because most people with Medicare have their Part B premiums automatically deducted from their Social Security checks. A federal law provision, known as hold harmless, generally prevents the standard Part B premium from rising by more dollars per month than the COLA dollar increase for those existing enrollees. A larger COLA therefore provides more room for the Part B premium to rise before that protection is triggered.
CMS has not yet announced the standard Medicare Part B premium for 2027. That figure is typically published in November. The same inflation data that drives the COLA is also used to adjust the income brackets that determine Income-Related Monthly Adjustment Amounts for Medicare Part B and Part D, though CMS has not released those 2027 thresholds yet either.
In plain words
The government said today that Social Security checks will go up 3.6 percent starting in January 2027. That is about 75 dollars more per month for most retirees. Most people on Medicare have their Part B premium taken out of their Social Security check. There is a rule that protects those people if the Part B premium rises too fast. A bigger raise gives that protection more room to work. Medicare has not yet said what the Part B premium will cost in 2027. That number usually comes out in November.
Understand the basics first
Source: Social Security Administration
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