How big is the 2027 Social Security increase, and when will I see it?
The Social Security Administration announced a 3.6 percent cost of living adjustment on October 14, 2026. It is based on the rise in the consumer price index for urban wage earners from the third quarter of 2025 to the third quarter of 2026.
| What | Detail |
|---|---|
| The increase | 3.6 percent for 2027, compared with 2.8 percent in 2026. |
| Who gets it | Nearly 72 million Social Security beneficiaries starting in January 2027. About 7.3 million people on Supplemental Security Income see theirs on December 31, 2026. |
| Average retirement benefit | SSA says the average retirement benefit rises by $75 a month. It puts the average retired worker's benefit at $2,095 before the increase and $2,170 after. |
| Your notice | Online in your mySocial Security account starting in late November, with the 2027 Medicare premium amount in the Message Center. Without an online account, the notice arrives by mail in December. SSA says people without an account need to create one and enroll in paperless notices by November 18 to see the notice online. |
What will the Part B premium be in 2027?
CMS has not announced it yet. The 2026 Medicare Trustees Report says the monthly Part B premium is $202.90 in 2026 and estimates $209.50 for 2027. SSA says the 2027 premium amount will be in your mySocial Security Message Center starting in late November.
- 2025$185.00
- 2026$202.90
- 2027 (Trustees estimate)$209.50
Source: CMS 2026 Medicare Parts A and B premiums and deductibles fact sheet (November 14, 2025); 2026 Medicare Trustees Report
That estimate would be a $6.60 increase, about 3.25 percent, after a $17.90 increase in 2026. CMS also set the 2026 Part B deductible at $283, up from $257, and the 2026 Part A inpatient hospital deductible at $1,736. The 2027 deductibles are not announced.
People with higher incomes pay more. For 2026, the extra income related charge begins above $109,000 of income for one person and $218,000 for a married couple filing jointly. SSA says it uses the most recent tax return the IRS provides. The 2027 thresholds are not announced.
Will the COLA cover a higher Part B premium?
Probably, for people with typical benefits, if the Trustees' estimate holds: an increase of about $6.60 a month is much smaller than an average retirement increase of $75. The hold harmless rule protects some people when the COLA is too small to cover the increase.
At a 3.6 percent COLA and a $6.60 increase, our arithmetic says the COLA would fall short only for monthly benefits below about $183. That is an estimate, because the premium is not final.
Medicare Interactive says the hold harmless rule does not protect people who are new to Medicare, people who pay the income related charge, and people in a Medicare Savings Program. A late enrollment penalty is not waived by the rule, and it is figured on the new, higher premium.
Who gets the $90 Medicare rebate?
CMS says it is making a one time $90 premium rebate available to 20.8 million people in Original Medicare Part B, to offset the October premium. People in Medicare Advantage are not eligible.
| Question | CMS answer |
|---|---|
| Who is included | People in Original Medicare Part B. CMS lists three conditions: living in the United States, not receiving premium assistance from Medicaid and not paying an income related monthly adjustment amount. |
| How it arrives | Most people get a direct deposit from SSA, on or around October 8, followed by an email or a letter from the President in mid October. Others get a Treasury check later in October, mailed to the address registered with Medicare. |
| How to check | Call 1-800-MEDICARE (1-800-633-4227) to check eligibility. Call Social Security at 1-800-772-1213, starting October 15, 2026, to check the status of a payment. |
The check carries the message “Medicare Improvement Fund Payment; $90 Payment to Offset October Premium.” Call the numbers above yourself rather than answering an unexpected message. The FTC says government agencies never call, email or text to ask for money or personal information.
What is happening to Medicare drug plan premiums in 2027?
CMS and KFF disagree on the size of the change for stand alone drug plans. KFF says its figure assumes people keep the plan they have now, and CMS does not say how its average is built, so we show both.
- 2026
- 2027
- CMS projection (September 28, 2026)2026: $352027: $36
- KFF estimate if people keep their plan (October 30, 2026)2026: $342027: $51
Source: CMS press release (September 28, 2026) and KFF news release (October 30, 2026)
KFF's analysis also finds no zero premium stand alone drug plans for people without low income subsidies in 2027, which affects more than 4 million people who paid no premium for their plan in 2026. Average premiums for the eight national plans range from about $6 to $204 a month. The number of stand alone plans available to the average person falls from 11 to 9, and most people will face a drug deductible of several hundred dollars, up to $700 in 2027 compared with $615 in 2026.
CMS says drug coverage is returning to normal market conditions as a temporary premium program is discontinued, and says 93 percent of people without low income subsidies can get an enhanced plan for less than $6 a month. KFF notes that 56 percent of Part D enrollees were in Medicare Advantage drug plans in 2026, so a majority are not affected by stand alone plan premium changes. Those plans can use federal rebate dollars to lower drug premiums.
What is happening to Medicare Advantage premiums in 2027?
CMS projects that the weighted average monthly Medicare Advantage premium falls from $14.37 in 2026 to $12.00 in 2027, a 16.5 percent drop. Averages hide big differences between plans, so look up the plan you have.
CMS also says more than 99 percent of people have at least one Medicare Advantage plan, the national count of plans changes from 5,553 to about 5,532 and about eight in 10 members can stay in their plan at the same or a lower premium. Its enrollment estimate for 2027 is 34 million people.
What should I do before December 7?
Medicare open enrollment runs October 15 to December 7, 2026. A change you make by December 7 starts January 1, 2027. People who want to keep their current coverage generally do not need to re-enroll, but plan costs and drug lists change each year.
- Find the Annual Notice of Change your plan mailed this fall and read what it says about your premium, deductible and drug list.
- Look up each prescription in the 2027 plan, not last year's.
- If you have a stand alone drug plan, compare at least three 2027 plans, because KFF found premiums moving in both directions.
- Late November 2026Your COLA notice and 2027 Medicare premium amount appear in mySocial Security.
- December 7, 2026Medicare open enrollment ends. Changes start January 1.
- December 31, 2026Supplemental Security Income increases begin.
- January 2027The 3.6 percent Social Security increase begins.
- January 1 to March 31, 2027People in Medicare Advantage can make one change to another Medicare Advantage plan or to Original Medicare with a drug plan.
Source: Social Security Administration, CMS and Medicare.gov
How can an agent help with Medicare costs for 2027?
An agent can compare the Medicare plans we offer using your doctors and prescriptions, explain what your Annual Notice of Change means and find a plan that fits your budget before December 7. Have your Medicare card and a list of your prescriptions ready.
Health Insurance Solutions agents are licensed in 22 states and help by phone and online. Marketplace plans cost the same with or without an agent, so the comparison does not add to your premium.
See our Medicare plans
Turning 65 or reviewing your plan? We'll walk through Advantage, Supplement, and Part D side by side.Medicare Part B premium and IRMAA calculator
Enter your income and filing status to see your 2026 Medicare Part B premium and any high-income surcharge.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 to get information on all of your options.
Talk to a licensed agent
We compare plans, explain the tradeoffs and help you enroll. It costs you nothing.