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RegExp("[?&]notifications=1(&|#|$)");"desktop"===h&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(no)),notifLabel:document.querySelector(".".concat(oo))};t.notifDropdown&&mo(e,t)}))}()}};]]>ADVERTISEMENTMaurie Backman, The Motley FoolSun, March 29, 2026 at 3:56 PM GMT+2 4 min readThere are millions of older Americans today who get monthly benefits from Social Security and health coverage through Medicare. Both programs changed meaningfully in 2026 -- for better and worse.In January, Social Security recipients got a 2.8% cost-of-living adjustment, or COLA. That's a pretty decent bump, outpacing 2025's raise.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »Image source: Getty Images.Medicare costs, on the other hand, rose substantially. And that's having a big impact on this year's Social Security COLA.When the Social Security Administration announced its 2026 COLA back in October of 2025, it said that following that raise, the average retirement benefit was likely to increase from $2,015 per month to $2,071 -- a $56 boost. But a steep rise in Medicare costs is rendering that COLA less effective.In January, Medicare Part B's standard monthly premium rose from $185 to $202.90 -- an increase of $17.90. Social Security recipients, in turn, are getting a much smaller average net COLA of about $38.Social Security recipients who are enrolled in Medicare have their Part B premiums deducted from their benefits automatically. So any time there's an increase in the cost of Part B, it results in a smaller net raise.It's possible for an increase in Medicare Part B costs to actually wipe out a COLA completely. Thankfully, though, there's a provision that prevents Social Security benefits from actually decreasing year to year due to a rise in the cost of Part B.But still, many seniors on Social Security may find themselves struggling due to their limited COLA. And let's remember that higher Part B premiums aren't the only change that came to Medicare this year.Not only did the annual deductible for Part B rise, but the cost of care under Part A increased across the board as well. This year, Medicare enrollees will pay more to be admitted to the hospital, and they'll also pay a higher daily coinsurance rate for an extended stay.Plus, some seniors may find that their individual Part D or Medicare Advantage plan costs have risen. So all told, a lot of retirees could end up having a hard time making ends and covering their recurring expenses.If you're a retiree collecting Social Security who's also on Medicare, you may be having a hard time managing your monthly bills -- especially if you're only looking at about a $38 net COLA like the typical beneficiary. 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