Medicare Part B Premium Projections for 2027
Retirees relying on Medicare and Social Security will face changes to their monthly benefits. According to the Medicare trustees’ annual report summarized by AARP, the standard Medicare Part B premium is projected to increase by $6.60, bringing the monthly cost to $209.50 in 2027.
This projection comes ahead of the official announcement by the Centers for Medicare & Medicaid Services (CMS) later in the fall. While the projected 2027 increase is milder than the 9.7% jump seen in 2026, it still impacts the annual cost-of-living adjustment (COLA) provided by the Social Security Administration.
How the Part B Increase Affects Your Social Security COLA
Forecasters estimate that the 2027 Social Security COLA will fall between 3.5% and 3.6%. For an average retired worker receiving about $2,086 a month as of July:
- 3.5% COLA: Adds roughly $73 a month.
- 3.6% COLA: Adds roughly $75 a month.
- Net Gain: Subtracting the projected $6.60 Part B premium increase leaves an estimated net gain of $66 to $68 a month.
For the average retiree, the projected premium increase absorbs roughly 9% of their raise. Beneficiaries with smaller monthly checks experience an even larger percentage impact because the Part B premium increase is a flat dollar amount rather than a sliding scale.
Protections and Relief Programs for Beneficiaries
Not all enrollees experience the exact same financial burden due to specific rules and assistance programs:
- Hold-Harmless Provision: The Social Security Act prevents a Part B premium increase from reducing certain beneficiaries’ net monthly payments below what they received the previous year. However, approximately 30% of Part B enrollees do not qualify for this protection, including those who do not receive Social Security checks and higher-income individuals.
- IRMAA Surcharges: Beneficiaries with higher incomes pay income-related monthly adjustment amounts (IRMAA) based on tax returns from two years prior. About 5.1 million beneficiaries paid these surcharges in 2025.
- Medicare Savings Programs: Lower-income seniors can seek assistance through State Medicare Savings Programs administered via Medicaid offices to help cover Part B premiums and deductibles.
- One-Time $90 Payment: Approximately 20.8 million Original Medicare Part B enrollees are receiving a one-time $90 payment from the Medicare Improvement Fund to help cover premium costs, provided they live in the U.S., do not receive Medicaid help, and do not pay IRMAA.
Key Deadlines to Keep in Mind
Timing is critical for beneficiaries managing their healthcare and retirement budgets:
- Medicare Open Enrollment: Runs from October 15 to December 7, allowing beneficiaries to compare and switch plans before CMS confirms official premium rates.
- Official Rates Release: CMS is expected to release final 2027 Part B rates and IRMAA brackets in November.
- COLA Notices: The Social Security Administration typically mails personalized COLA notices in December.
Beneficiaries seeking guidance can consult State Health Insurance Assistance Program (SHIP) counselors for free assistance regarding Medicare Savings Programs and plan choices.
