A Social Security increase is calculated before deductions. If your Medicare Part B premium is taken from your benefit, a higher premium can absorb part of the increase in your bank deposit. The percentage in a COLA headline therefore does not tell you the percentage change in spendable income.
Compare dollars with dollars
Use two columns: this year and next year. Enter the gross benefit, Part B deduction and any other deductions shown on your notice. Subtract the deductions to find the net payment in each column.
For illustration only, a $72 gross increase and a $10 increase in deductions would leave $62 more in the deposit. Those figures are an example, not the announced 2027 premium or a personalized estimate.
What hold harmless means
Social Security’s hold-harmless rule can protect eligible recipients from a lower net benefit caused solely by a Part B premium increase. It does not guarantee that every recipient keeps the entire COLA. Eligibility conditions apply, including benefit entitlement and premium withholding in the relevant months; people paying income-related Part B surcharges are excluded.
Check the actual deduction on your new notice. If it differs from what you expected, identify whether the issue is the standard premium, an income-related adjustment or another deduction before seeking an explanation. Keep an estimate in your planning notes until the official amount is available.
