Social Security COLA 2025: 5 Reasons Why Rising Medicare Premiums Could Wipe Out Your Raise Next Year

The 2025 Social Security COLA is estimated to be around 2.5%. For many retirees, rising costs of Medicare premiums could offset much of this raise. If you wish to check out our detailed analysis of Social Security benefits and Medicare, you may go to 7 Reasons Why Rising Medicare Premiums Could Wipe Out Your Raise.

5.     How Healthcare Inflation Outpaces Social Security Increases

Spending on prescription drugs administered in a physician’s office can drive up Medicare Part B premiums. These rising costs can impact the overall benefit of the Social Security COLA adjustment. According to a RAND report, prescription drug prices in the USA are much higher than in other countries, with US prices averaging 2.78 times than those in 33 other countries. As healthcare expenses continue to rise at a rate that often outpaces COLA increases, retirees may find their purchasing power diminished, making it increasingly difficult to cover essential living expenses.