Washington Retirees Expected a Raise in January. Here’s What Actually Happened.
The 2026 Social Security cost-of-living adjustment came in at 2.8 percent. For the average retiree collecting around $2,000 a month, that translated to roughly $56 more per month.
Then Medicare took its share.
The standard Medicare Part B premium increased from $185 to $202.90 in January — a $17.90 jump that gets automatically deducted from Social Security checks for most beneficiaries. That left the average retiree with a net increase of about $38 a month.
Medicare Part B consumed nearly a third of the entire COLA before a dollar reached anyone’s account.
For retirees in IRMAA surcharge territory — those with incomes above $109,000 individually or $218,000 for couples based on 2024 income — the picture was worse. Some lost 50 percent or more of their COLA increase to premium increases alone.
Part B premiums are rising almost 3.5 times faster than the COLA. This is the third straight year that the Medicare Part B standard premium has risen faster than Social Security’s COLA.
Most people didn’t see this coming. The 2.8 percent headline sounded reasonable. The math underneath it didn’t.
The Numbers Behind the Squeeze
Medicare Part B premium: $202.90 per month. Up $17.90 from 2025.
Part B annual deductible: $283. Up $26 from last year.
Part A deductible: $1,736 per hospital stay.
Medicare Supplement premiums in Washington: up 8 to 26 percent depending on the carrier. Major carriers including Aetna, Mutual of Omaha, and others filed increases of 12 to 26 percent on Plan G in early 2026 filings. Premera, Washington’s largest Medigap insurer, raised rates April 1.
The Part B increase is set by the federal government. The Medigap increases are set by private carriers. They moved in the same direction at the same time.
Part B premiums as a share of annual Social Security benefits reached an all-time high of 9.4 percent in 2026.
For a retiree on a fixed income managing a monthly budget to the dollar, this isn’t an abstraction. It’s a shift they felt in January and have been managing ever since.
What Washington’s No-Income-Tax Advantage Does — and Doesn’t — Do
Washington is one of the most tax-friendly states for retirees. No state income tax means your pension, Social Security, and IRA withdrawals aren’t taxed at the state level. That’s a real and meaningful advantage.
It doesn’t protect you from Medicare’s federal cost increases.
Part B premiums are set by CMS. IRMAA surcharges are calculated by the IRS based on your federal Modified Adjusted Gross Income. The Medigap rate increases filed with Washington’s Office of the Insurance Commissioner are specific to the state — but they still went up.
Washington’s tax advantage helps your retirement income go further at the state level. The Medicare cost squeeze is happening at the federal level, and it hits Washington retirees the same way it hits retirees in every other state.
What You Can’t Change — and What You Can
There are parts of this picture that are fixed. And parts that aren’t.
What you can’t change:
The Medicare Part B premium is set annually by CMS. For 2026 it’s $202.90 for everyone at the standard tier. You can’t negotiate it, shop around for it, or avoid it if you want Medicare coverage.
The COLA is what it is. It’s calculated from the Consumer Price Index and announced each fall.
What you can change:
Your Medicare Supplement carrier is not fixed. In most states, switching Medigap plans after your initial enrollment window requires medical underwriting — meaning carriers can ask health questions and potentially deny you. Washington is different. State law gives Supplement enrollees guaranteed-issue switching rights, meaning you can switch from one carrier to another at any time of year without medical underwriting. No health questions. No risk of denial.
With Medigap rates up 8 to 26 percent from some carriers in 2026, the gap between the highest and lowest priced Plan N or Plan G in Washington has grown. The coverage is identical across carriers. The price isn’t.
If you haven’t compared your Supplement premium recently, that comparison is worth making.
What else you might be able to change:
If you retired recently and your income in 2026 is significantly lower than your 2024 income — which Medicare uses to calculate IRMAA — you may qualify to file Form SSA-44 and request a recalculation based on your current income. This is one of the most underused tools available to Medicare beneficiaries and one of the most relevant for people who retired from Washington public employment, education, or private sector jobs in the last two years.
The Hold Harmless Protection
One protection worth knowing about.
Under Social Security’s hold harmless provision, your net Social Security check cannot decrease from one year to the next due to a Part B premium increase. It helps people with smaller benefits most.
This matters only if your Part B premium is deducted directly from your Social Security check. If you pay your Part B premium separately — meaning it isn’t deducted automatically from Social Security — the hold harmless protection doesn’t apply to you.
It also doesn’t help with Medigap rate increases, IRMAA surcharges, or Part D premium changes. Only the base Part B deduction from your Social Security check.
What This Means Going Into the Rest of 2026
The pattern of the last three years hasn’t changed direction.
Medicare costs are not going down. The Part B premium for 2027 will be announced this fall. Based on recent history, it will likely increase again.
What you pay for your Supplement plan is the one variable in this equation you have direct control over in Washington. That’s not nothing.
The difference between the most expensive and least expensive Plan N in Washington right now is approximately $80 a month. For a couple where both spouses are enrolled, that’s $160 a month — nearly $2,000 a year — for identical coverage.
That gap is worth a 10-minute conversation to find out whether it applies to your situation.
Frequently Asked Questions
Why did my Social Security check barely increase in January even though there was a 2.8 percent COLA?
Can Medicare Part B premiums increase faster than my Social Security COLA?
Does Washington’s no-income-tax advantage protect me from Medicare premium increases?
Can I switch my Medicare Supplement plan in Washington if rates went up?
What is Form SSA-44 and should I file it?
Have questions about your specific situation?
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Michael Gurr is a licensed Medicare and retirement advisor serving Pierce County and Washington State. This article is for educational purposes and does not constitute financial or legal advice.