On October 14, the Social Security Administration announced that benefits will rise 3.6% in 2027, the largest increase in three years. According to the Associated Press , that works out to about $75 a month for the average beneficiary. The raise begins with December benefits, which are paid in January.

What does this mean for Medicare patients?

Medicare Takes Its Share First

Most beneficiaries have their Medicare Part B premium deducted directly from their Social Security check. CMS has not yet announced the 2027 premium. It usually does so in November. The best official estimate comes from the 2026 Medicare Trustees Report , which projects the standard Part B premium rising from $202.90 to about $209.50 a month, an increase of $6.60. The Part B deductible is projected to rise from $283 to about $292.

That is a far smaller jump than last year, when the premium rose 9.7%. If the projection holds, the typical retiree keeps most of the new $75. But the long-run trend is the problem. The Trustees project Part B premiums growing about 6% a year through 2031, while KFF reports that seven million beneficiaries already spent more than 10% of their income on the Part B premium alone in 2024. A 3.6% raise in one year does not undo that.

The Hold-Harmless Rule And Who It Leaves Out

Federal law includes a “hold-harmless” provision. For most people whose Part B premium is deducted from Social Security, the premium increase cannot exceed the dollar increase in their benefit. In other words, Medicare cannot shrink a net check.

With a 3.6% COLA and a projected $6.60 premium increase, the provision will likely matter to few people this year. It also does not protect everyone. New enrollees, people who do not have premiums deducted from Social Security, and higher-income beneficiaries paying the Income-Related Monthly Adjustment Amount, or IRMAA, are not covered. IRMAA surcharges are based on tax returns from two years earlier, so a one-time event in 2025 such as selling a home or a business can raise 2027 premiums. Beneficiaries who had a life-changing event, such as retirement or the death of a spouse, can ask Social Security to reconsider using Form SSA-44.

Drug Costs: A Cap That Helps, But Is Rising

The best news for seniors with expensive prescriptions is the Part D out-of-pocket cap created by the Inflation Reduction Act. In 2026 the cap is $2,100. CMS has set it at $2,400 for 2027 , with a maximum standard deductible of $700. After a beneficiary reaches the cap, covered drugs cost nothing for the rest of the year.

For a patient on cancer drugs, biologics for inflammatory disease or multiple brand-name medications, that cap is worth far more than any COLA. For a patient on a few generics, plan premiums and pharmacy networks matter more. That is why the next seven weeks are important.

Next Steps: Open Enrollment Is Where the Raise Is Won Or Lost

Medicare open enrollment runs from October 15 to December 7. Plans change their premiums, formularies and networks every year. A patient who keeps the same plan without checking can lose more to a new drug tier or an out-of-network surgeon than the COLA adds. Patients needing surgery should also consider the barriers injected by Medicare Advantage plans. This includes a cumbersome prior authorization process for surgery and procedures. Information can be found on Medicare.gov’s plan finder.

Keep In Mind: Seniors Are Getting A Raise While Their Doctors Are Getting A Cut

There is a contrast here that patients should understand. Social Security rises with inflation. Physician payment under Medicare does not.

In its proposed 2027 Physician Fee Schedule , CMS projects the conversion factor will fall 1.68% for most physicians and 1.19% for those in qualifying alternative payment models. The main driver is the expiration of a one-year 2.5% increase Congress passed for 2026. Practice costs, including staff, rent, malpractice insurance and supplies, rise every year.

Why does this matter to patients?

Medicare is failing patients because physician pay has fallen about a third after inflation since 2001. The result is not abstract. Practices limit new Medicare patients, rural clinics close and independent physicians sell to hospital systems, where the same service often costs Medicare and the patient more. A 3.6% raise does little good if the neurologist, cardiologist or spine surgeon has a four-month wait.