The Medicare Part B premium will be about $106.60, a 10.6% increase over the current premium for hold harmless beneficiaries at $96.40. This also means that those Medicare beneficiaries who are paying more than $106.60 will see a decrease in their monthly premium. Why such an apparent modest increase? Because now, given there will be a Social Security COLA, all beneficiaries are in the pool to offset the costs of Part B, not just the 25% who have not had their premium frozen for the last several years.
Given we are still looking for about a 3.5% increase in Social Security benefits, you can now do the math and see what your net increase in monthly Social Security is likely to be. For example, let’s say your benefit is $1,000. A 3.5% increase gives you $1,035 less the increase in Part B of $10.20 for a net new benefit of $1,024.8 or a net percentage increase of 2.48%.