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

2.     The ‘Hold Harmless’ Provision May Not Protect Everyone

While the standard Part B premiums for 2024 were between $174.70 and $594 depending on one’s income, many people may pay less than this amount due to a “hold harmless” rule. This rule states that the part B premiums may not increase more than the Social Security COLA increase in any given year, preventing SS checks from declining year-over-year and capping part B premium increases to no more than the amount of COLA.

While the hold harmless rule aims to protect beneficiaries from having their Social Security checks reduced due to higher premiums, the rule only applies when the COLA increase is less than the Medicare premiums increase. Also, those who are not covered by this provision will likely have a reduction in their net income, since the increase in Medicare premiums may outstrip the COLA adjustment. Some individuals not covered by the provision include those who make payments for part B insurance directly to Medicare or those who have premiums paid by Medicaid.