By Hans Goldstein, Founder, Retirement Literacy Foundation. He is also a licensed California insurance producer (#4273294). Education, not a product recommendation.Published · Methodology dated October 7, 2026
Medicare's 2026 premium increase took 32% of the average retiree's $56 monthly COLA. In the top 2 IRMAA tiers, the increase ($62.00 to $66.20 a month) was larger than that entire raise. Crossing the first IRMAA line by $1 added $1,148.40 a year per person, 1.7 times the average retiree's whole annual COLA.
Short answer
In 2026 Social Security rose 2.8%, which added $56 a month to the average retired worker's check ($2,015 to $2,071, per SSA). The standard Medicare Part B premium rose $17.90, from $185.00 to $202.90 (CMS). That is 32% of the raise, gone before the deposit lands for anyone whose premium is taken from the check.
The share climbs with income. Medicare's income-related monthly adjustment amounts (IRMAA) are multiples of the standard premium, so when the base rises, every surcharge tier rises faster. In tiers 4 and 5, the 2026 increase alone was $62.00 and $66.20 a month, more than the average retiree's entire $56 COLA.
The 2026 numbers, tier by tier
| Tier | 2024 MAGI, single | 2024 MAGI, joint | 2025 Part B + Part D IRMAA | 2026 Part B + Part D IRMAA | Monthly increase | Share of $56 avg COLA |
|---|---|---|---|---|---|---|
| Standard (no IRMAA) | $109,000 or less | $218,000 or less | $185.00 | $202.90 | +$17.90 | 32% |
| IRMAA tier 1 | $109,001 to $137,000 | $218,001 to $274,000 | $272.70 | $298.60 | +$25.90 | 46% |
| IRMAA tier 2 | $137,001 to $171,000 | $274,001 to $342,000 | $405.30 | $443.30 | +$38.00 | 68% |
| IRMAA tier 3 | $171,001 to $205,000 | $342,001 to $410,000 | $537.90 | $587.90 | +$50.00 | 89% |
| IRMAA tier 4 | $205,001 to $499,999 | $410,001 to $749,999 | $670.50 | $732.50 | +$62.00 | 111% |
| IRMAA tier 5 (top) | $500,000 or more | $750,000 or more | $714.70 | $780.90 | +$66.20 | 118% |
Per person, per month. Part D column is the income-related adjustment only; the plan premium itself varies by plan and is not included. Tier rows compare the same tier across years (the income lines rose from $106,000 to $109,000 single).
A fair caveat
People in the higher IRMAA tiers usually collect bigger checks than the average, so their COLA in dollars is bigger too. At the maximum benefit for a worker retiring at full retirement age ($4,152 in 2026), a 2.8% COLA is about $113, and the top-tier increase still took about 59% of it. A married couple pays IRMAA per person, so both spouses' surcharges rise.
The cliff: $1 over a line
IRMAA is not phased in. Medicare looks at modified adjusted gross income from two years earlier (2024 income for 2026 premiums). One dollar over $109,000 single or $218,000 joint adds $81.20 a month to Part B and $14.50 to Part D, or $1,148.40 a year per person. That is 1.7 times the average retiree's whole year of COLA ($672). A one-time event, such as a home sale gain, a Roth conversion or a large IRA withdrawal, can trigger it for one year. If income dropped because of a life-changing event such as retirement, SSA lets you ask for a lower amount with form SSA-44.
2027: what we know before October 14
SSA announces the 2027 COLA on October 14, 2026, from September inflation data. We will add it to this section that morning. CMS sets the official 2027 Part B and IRMAA amounts later, usually in November.
| Tier | 2026 Part B (official) | 2027 Part B (projected) | Projected monthly increase |
|---|---|---|---|
| Standard (no IRMAA) | $202.90 | $209.50 | +$6.60 |
| IRMAA tier 1 | $284.10 | $293.30 | +$9.20 |
| IRMAA tier 2 | $405.80 | $419.00 | +$13.20 |
| IRMAA tier 3 | $527.50 | $544.70 | +$17.20 |
| IRMAA tier 4 | $649.20 | $670.40 | +$21.20 |
| IRMAA tier 5 (top) | $689.90 | $712.30 | +$22.40 |
2027 standard premium is the 2026 Medicare Trustees Report estimate ($209.50). Tier amounts apply the statutory IRMAA multiples (1.4x to 3.4x the standard premium) and can differ by a few cents from CMS's final figures. Part D IRMAA for 2027 is not projected here.
Three questions to ask before year end
- Which income year sets my premium? 2026 income sets 2028 premiums. Map any planned gain, conversion or withdrawal against the IRMAA lines first.
- Is my premium taken from my check? If so, the net deposit, not the COLA headline, is what changes your budget.
- Did my income drop for a qualifying reason? Retirement, a spouse's death or loss of income from work can support an SSA-44 request.
Related free tools: the foundation's IRMAA calculator and 2027 IRMAA bracket projections.
Methodology (dated October 7, 2026)
Part B total premiums and Part D income-related adjustment amounts for 2025 and 2026 are taken from the CMS fact sheets for each year. The average COLA in dollars is the difference between SSA's estimated average monthly benefit for all retired workers before and after the 2.8% COLA ($2,015 and $2,071). Each tier is compared with the same tier a year earlier; the income lines themselves are indexed. Part D plan premiums vary by plan and are excluded. Figures are per person, per month, before any Medicare Savings Program or state help. The Part B hold-harmless rule, which caps the premium increase at the dollar COLA for some low-benefit enrollees, does not apply to IRMAA payers or to new enrollees. The 2027 standard premium is the 2026 Trustees Report estimate, not an official premium.
Sources
- CMS, 2026 Medicare Parts A and B Premiums and Deductibles (fact sheet)
- CMS, 2025 Medicare Parts A and B Premiums and Deductibles (fact sheet)
- Social Security Administration, 2026 Social Security Changes (COLA fact sheet)
- Social Security Administration, Cost-of-Living Adjustment (COLA) Information
- 2026 Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds
- Social Security Administration, Request to lower IRMAA (form SSA-44)
Goldstein, H. (2026, October 7). How Much of the COLA Medicare Takes Back, by Income Tier. Retirement Literacy Foundation. https://retirementliteracyfoundation.org/research/cola-medicare-take-back/
Journalists and educators may quote and chart these findings with a link to this page. Data: download the CSV.
Get the free Social Security guide.
You’re reading about COLA vs Medicare. Social Security touches almost all of it, and it is where the costliest mistakes happen. We’ll email you our guide, the taxable-benefit thresholds, the survivor-benefit trap and the claiming-age math, in plain English, plus an invite to the next free class. This is a public charity; there is nothing to buy.
The Retirement Literacy Foundation is a 501(c)(3) public charity (EIN 41-5062266). Free public education only. We don’t sell financial products and we don’t give individualized advice. We’ll email it to you. Unsubscribe any time.