The average retired worker’s Social Security benefit rises $75 a month in January 2027, and Medicare will claim part of it. The Medicare Trustees project the standard Part B premium at $209.50, up $6.60, which would leave about $68.40 of the raise. CMS has not yet confirmed the official premium.
Key Takeaways
- The Social Security Administration’s 3.6% COLA raises the average retired worker’s benefit from $2,095 to $2,170 a month in January 2027.
- The 2026 Medicare Trustees Report projects the 2027 standard Part B premium at $209.50 a month, up $6.60 from $202.90, with the deductible estimated at $292.
- At the projected premium, an average retired couple’s $117 monthly increase would shrink to about $103.80 after two Part B premiums.
- No Medicare drug plan may charge a deductible above $700 in 2027, up from $615, and out-of-pocket spending on covered Part D drugs is capped at $2,400, up from $2,100.
- CMS set the 2027 Part D base beneficiary premium at $41.33, up 6% from $38.99.
- Medicare open enrollment runs through December 7, 2026, and CMS typically announces Part B figures in mid-November.
The 3.6% COLA Adds $75 to the Average Retirement Check
The Social Security Administration announced on October 14, 2026, that benefits will rise 3.6% for 2027. Nearly 72 million beneficiaries see the increase starting in January. The average monthly benefit for all retired workers rises from $2,095 to $2,170, and the average for an aged couple both receiving benefits rises from $3,238 to $3,355, an increase of $117.
The 2027 COLA is the largest since 2023’s 8.7%, following 2.8% in 2026 and 2.5% in 2025. For most retirees, though, the gross COLA isn’t the amount that reaches their bank account. Most beneficiaries enrolled in Medicare Part B have the premium deducted directly from their Social Security payment, so any premium increase comes straight out of the raise.
Projected Part B Growth Trails the COLA This Year
The 2026 Medicare Trustees Report estimates the 2027 standard Part B premium at $209.50 a month, an increase of $6.60, or about 3.3%, from $202.90 in 2026. The report estimates the annual Part B deductible at $292, up from $283. Both figures are projections until CMS publishes its official 2027 amounts.
The comparison with last year shows why the projection matters. For 2026, the standard Part B premium rose $17.90 from $185.00, an increase of nearly 10%, against a 2.8% COLA. For 2027, the projected premium increase is smaller in percentage terms than the COLA itself, which would let retirees keep a larger share of their raise than they did in 2026.
The Net Raise for Individuals and Couples
Using the Trustees’ projection, the arithmetic for 2027 is straightforward:
- Average retired worker: $75 COLA increase minus a $6.60 Part B increase leaves about $68.40 more per month, or about $820 over the year.
- Average retired couple, both enrolled in Part B: $117 COLA increase minus two $6.60 Part B increases ($13.20) leaves about $103.80 more per month.
These figures assume the standard Part B premium. Higher-income enrollees pay an income-related monthly adjustment amount on top of it, and CMS hasn’t yet published the 2027 income brackets for those surcharges. Coinsurance after the Part B deductible remains 20% of the Medicare-approved amount for most covered services.
Part D Costs for 2027 Are Already Final
The prescription drug side of Medicare is already settled for 2027. According to Medicare.gov, no Medicare drug plan may charge a deductible above $700 in 2027, up from $615 in 2026. Once a beneficiary’s out-of-pocket spending on covered Part D drugs reaches $2,400 in 2027, up from $2,100, catastrophic coverage begins and the beneficiary pays nothing more for covered drugs that year.
CMS set the 2027 Part D base beneficiary premium at $41.33 in its July 28, 2026, release. That’s the 2026 figure of $38.99 increased by 6%, the lower of the two calculations the law requires CMS to compare. CMS notes that actual premiums vary from plan to plan and seldom equal the base figure, so the base premium sets a reference point rather than a price any individual pays.
The Hold-Harmless Rule Protects Most Checks From Shrinking
A provision known as the hold-harmless rule prevents a beneficiary’s Social Security payment from going down because of a Part B premium increase. If a beneficiary’s COLA isn’t large enough to cover the premium increase, the premium increase is limited so the net payment stays the same.
To qualify, a beneficiary must receive Social Security benefits for November and December and have Part B premiums for December and January deducted from those benefits. The rule doesn’t apply to people enrolling in Part B for the first time, people paying an income-related adjustment amount, or people dually eligible for Medicaid whose premium is paid by a state Medicaid agency.
CMS Confirmation Comes Weeks Before the December 7 Deadline
CMS released the 2026 Part A and Part B figures on November 14, 2025, and the 2027 announcement is expected on a similar mid-November schedule. That release will also set the 2027 Part A inpatient deductible, which is $1,736 in 2026, and the income brackets for Part B and Part D surcharges.
The timing leaves a short window. Medicare open enrollment for 2027 coverage runs from October 15 to December 7, 2026, and changes take effect January 1, 2027. The official Part B figure, and the exact net COLA each beneficiary receives, will arrive with only a few weeks left in that window.
FAQs
What is the Medicare Part B premium for 2027?
CMS hasn’t announced it yet. The 2026 Medicare Trustees Report projects the standard 2027 Part B premium at $209.50 a month, up $6.60 from $202.90 in 2026.
How much will the 2027 Social Security COLA increase benefits?
The 3.6% COLA raises the average retired worker’s benefit by about $75 a month, from $2,095 to $2,170, starting in January 2027.
How much of the 2027 COLA will Medicare take?
At the projected Part B premium, about $6.60 of the average $75 increase would go to Medicare, leaving about $68.40 more per month for the average retired worker.
What is the Part D out-of-pocket cap for 2027?
Out-of-pocket spending on covered Part D drugs is capped at $2,400 in 2027, up from $2,100 in 2026, and no drug plan may charge a deductible above $700.
When does Medicare open enrollment end for 2027 coverage?
Open enrollment runs from October 15 to December 7, 2026, and plan changes take effect January 1, 2027.
