A hold harmless provision will ensure that Social Security checks do not decrease, as a result of the Medicare Part B premium increase. The increase in Medicare Part B premiums is limited to the amount of a recipient’s COLA.
The Medicare hold-harmless clause isn’t paid for by a single fund; instead, the cost is borne by other beneficiaries and the system as a whole. While protected beneficiaries don’t see a decrease in their Social Security checks due to a Medicare premium increase, those not protected end up paying the full premium, or even a higher premium, to cover the shortfall.
This means the cost is effectively transferred to those who are not held harmless, so they either pay the higher full premium or are the ones who cover the difference in future years.
In 2026 only the lowest income beneficiaries will be protected – those with around $745 in SS monthly benefits, assuming the projected Part B premium increase is actually $21.50. ($745 x 2.8%=$20.86).
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