2026 Social Security Cost of Living Adjustment

When we get to the end of the year, it’s time to look ahead to what numbers will change in 2026 for the government programs from which our clients receive benefits.  It starts with the Social Security Administration, which announces its cost of living adjustment (COLA).  Other government programs then adjust their numbers, often using the same COLA as Social Security.  Since inflation hit a 40 year high in 2022,  the rate has dropped.  After a COLA of 8.7% in 2023, the adjustment dropped to 3.2% for 2024 and 2.8% in 2025.  

For 2026, the Social Security administration has announced another 2.8% increase.

Inflation, has continued to decline this year and consequently so has the COLA.  This bump up will be first be seen in January, 2026 monthly payments.

Medicare numbers will also change next year, although not tied to the same adjustment.  Similar to last year, the standard Medicare Part B premium that most people pay will increase. In 2026 While that number will increase by almost 10% to $202.90 per month..  Certain Medicare deductibles and copays will increase next year.  The Part A hospitalization deductible will increase by $60 to $1736 and the copay for days 61 through 90 is expected to increase from $419 to $434 per day.

Medicare covers the cost of rehabilitation in a skilled nursing but there is a copay for that as well.  The first 20 days are covered 100%.  The next 80 days have a copay, which will increase from $209.50 per day in 2025 to $217 per day in 2026. 

Other government programs adjust their numbers annually in lockstep with Social Security by the same cost of living adjustment.  Check back here in coming weeks as we will look at those numbers as well.