2027 Social Security COLA: What the 3.6% Raise Means for Your Medicare
The Social Security Administration has made it official. The 2027 Social Security COLA is 3.6%, the largest increase in five years. That’s good news for the roughly 72 million people who collect Social Security. However, if you’re on Medicare, the number on your check in January won’t tell the whole story. Here’s what’s changing, what Medicare may take back, and what you should do right now.
The 2027 COLA at a Glance
- 3.6% increase for Social Security retirement, disability, and survivor benefits, starting with January 2027 payments.
- About $75 more per month for the average retired worker, raising the average benefit from roughly $2,095 to $2,170.
- SSI recipients see their higher payment a little early, on December 31, 2026.
- The taxable maximum rises to $192,300, up from $184,500.
To estimate your own raise, multiply your current monthly benefit by 0.036. For example, a $2,000 benefit goes up about $72 a month.
How Much Will Medicare Part B Take Back?
Most people have their Part B premium deducted straight from their Social Security check. So when Part B goes up, part of your raise disappears before it ever reaches your bank account.
The Medicare Trustees project the standard Part B premium will rise from $202.90 to $209.50 a month in 2027, an increase of $6.60. In other words, the average retiree’s $75 raise would shrink to roughly $68 in net take-home. The Part B deductible is also projected to rise, from $283 to $292.
Keep in mind, these Part B figures are still projections. CMS typically announces the official 2027 premium, deductible, and IRMAA brackets in November. We’ll update this post as soon as they’re released.
Who Could Feel a Bigger Hit
A rule known as the “hold harmless” provision prevents a Part B increase from lowering most people’s Social Security check year over year. That said, not everyone is protected. You’d pay the full Part B increase if you:
- Are new to Medicare or just started collecting Social Security
- Pay IRMAA, the income-related surcharge for higher earners
- Don’t have your Part B premium deducted from your Social Security check
If you pay IRMAA, it’s worth a closer look. Your 2027 surcharge is based on your 2025 tax return. If your income has dropped because of retirement or another life-changing event, you may be able to request a reduction with Form SSA-44.
When You’ll See Your New Benefit Amount
If you have a my Social Security account at ssa.gov/myaccount, your COLA notice will be available online in late November. Otherwise, you’ll receive it by mail in December. Your notice will show your new benefit and any deductions, including your Medicare premium.
Also, watch out for scams. Social Security will never call to “verify” your COLA or ask for payment by gift card or wire transfer.
Don’t Let Your Raise Get Eaten by Plan Changes
Your COLA is only half the picture. Meanwhile, Medicare plans are changing too. For 2027, there are no longer any $0-premium standalone Part D plans, and the annual out-of-pocket cap on prescription drugs rises from $2,100 to $2,400. On top of that, Medicare Advantage plans can change their networks, copays, and drug lists every year.
That’s why the Annual Enrollment Period, running through December 7, matters so much. A plan that worked well in 2026 could cost you more in 2027, and that can quietly wipe out your entire COLA.
Let’s Review Your 2027 Coverage Together
At Craig Smith Insurance Group, we’ve been helping New Yorkers make sense of Medicare since 2013. We’ll review your current plan, check your doctors and prescriptions, and compare your options at no cost to you. Call us at 917-740-1895 or email craigsmith@csmedicare.net before December 7.
Sources: Social Security Administration 2027 COLA announcement (ssa.gov/cola) and the 2026 Medicare Trustees Report. Part B figures for 2027 are projections until CMS publishes final amounts.
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE (TTY 1-877-486-2048), 24 hours a day, 7 days a week, to get information on all of your options. Craig Smith Insurance Group is not connected with or endorsed by the U.S. government or the federal Medicare program.
Craig Smith
Independent Medicare Insurance Broker | AHIP Certified
Craig Smith is the founder of Craig Smith Insurance Group, an independent Medicare brokerage serving seniors across New York, New Jersey, and nationwide since 2013. With over 25 years of financial services experience and 317+ five-star Google reviews, Craig helps clients compare Medicare Advantage, Medicare Supplement, and Part D plans — always free of charge.
Learn more about Craig →
