Starting in 2026, Medicare Part B premiums are changing in a way that splits retirees into two groups: those who are protected from the full increase and those who will pay the higher amount.
The rule involves something called the “hold harmless” policy, which can shield some retirees from having their Social Security checks reduced when premiums rise. But not everyone qualifies, and knowing whether you’re protected can help you plan your finances better.
When Does This Change Take Effect — and What Are the New Costs
The changes take effect in 2026. The standard Medicare Part B premium will rise to $202.90 per month, an increase of $17.90 over 2025. At the same time, the Part B deductible is going up by $26, from $257 to $283.
For many retirees, this means both monthly premiums and out-of-pocket costs will increase. Knowing how this affects your Social Security check is key to budgeting for the new year.
How the Hold Harmless Rule Works Explained Simply
The hold harmless rule prevents your Social Security check from dropping if your cost-of-living adjustment (COLA) isn’t enough to cover the Medicare premium hike.
In simple terms: if the government sees that your COLA is smaller than your premium increase, it keeps your Social Security payment at the same level. But there are conditions not everyone is eligible.
Who Is Protected — and Who Pays the Full Premium Increase
This is where retirees are divided. Some people are protected under the hold harmless rule, while others will pay the full increase.
| Group | Protected | Full Premium Increase |
|---|---|---|
| Longtime Social Security recipients | Yes | No |
| People whose COLA covers the increase | No | Yes |
| New Medicare enrollees | No | Yes |
| High-income earners paying IRMAA | No | Yes |
| People paying Part B premiums outside Social Security | No | Yes |
Only a small portion of retirees are protected, while most will experience the higher costs directly.
Why Some Retirees Aren’t Protected
Many retirees won’t benefit from the hold harmless rule. The main reasons include:
- New to Medicare: If you didn’t have Part B deducted from your Social Security last year, you’re not covered.
- High income: IRMAA (Income-Related Monthly Adjustment Amount) surcharges are not included in hold harmless protections.
- Large COLA: If your cost-of-living increase already covers the premium hike, hold harmless doesn’t apply.
- Direct payments: If you pay Part B directly instead of through Social Security, you won’t be shielded.
How This Impacts Your Social Security Check
The impact varies depending on which group you fall into:
- Protected retirees: Social Security payments stay steady, even with higher Medicare premiums.
- Unprotected retirees: The premium increase may reduce your net Social Security payment or require you to pay more out of pocket.
- High-income retirees: IRMAA surcharges could further increase costs, making the hike feel larger.
- Deductible increase: The $26 higher deductible adds to your upfront medical costs before coverage starts.
Best Tips to Navigate the 2026 Medicare Changes
Here’s how to stay prepared:
- Review your income from two years ago to see if IRMAA applies.
- Check how you pay Part B to determine if hold harmless could protect you.
- Estimate your net Social Security to see how the premium increase affects your monthly check.
- Budget for the higher deductible to avoid surprises when paying out-of-pocket costs.
- Plan ahead with a financial advisor if you have complex income or high premiums.
Key 2026 Medicare Numbers to Know
Here’s a quick snapshot of the most important numbers:
- Standard Part B premium: $202.90/month (up $17.90)
- Part B deductible: $283/year (up $26)
- IRMAA surcharges: Additional premiums based on income, which are not protected by hold harmless
These numbers show why some retirees will see a bigger financial impact than others.
Final Thoughts
The 2026 Medicare rule change highlights a split between retirees: a small group protected by hold harmless, and the larger group paying the full premium increase.
If you’re protected, your Social Security check won’t shrink, which is a relief. If you’re unprotected, the hike and rising deductible will affect your finances, making careful planning essential.
Staying informed about your Medicare status, understanding your income situation, and budgeting for higher costs will help you manage the change successfully. This rule is a reminder that even small policy shifts can have a big impact on retirement finances.
