The internet keeps asking if the Social Security Administration (SSA) is “cancelling COLA” for certain beneficiaries.
Short answer: COLA isn’t cancelled—but some people can see little-to-no net increase after deductions and offsets.
Below is a future-focused guide that explains how the next adjustment will work, who might not feel the raise, and how to protect your check.
First, what COLA actually does
Cost-of-Living Adjustments (COLA) are designed to keep Social Security and SSI benefits in line with inflation.
Each year, SSA applies the COLA to benefits payable in January (with SSI usually reflecting the change at the end of December).
While the increase is automatic, your net deposit can look smaller than expected if other items rise or are withheld.
Why some people may see no net bump
Even with a positive COLA, your take-home can be flat if:
- Medicare Part B premiums rise and absorb most or all of the raise.
- You’re not protected by the Hold Harmless rule (details below).
- You owe overpayment recovery, child support, tax withholding, or other offsets.
- Your family is near the Maximum Family Benefit, limiting increases for auxiliaries (spouse/children).
- You’re subject to IRMAA (income-related Medicare surcharges), which are not shielded by Hold Harmless.
The Hold Harmless rule—who is and isn’t protected
The Hold Harmless provision generally prevents your Social Security check from going down because of a Part B premium increase. But it doesn’t cover everyone.
If you’re new to Part B, pay premiums directly (not taken from Social Security), owe IRMAA, or your premiums are handled by Medicaid (dual-eligible), you might not be protected and could see a smaller net gain.
Who could feel like COLA was “cancelled”
Here’s a quick look at groups most likely to see little-to-no net increase in the upcoming year—even though COLA still applies.
| Group | What You Might See | Why It Can Happen |
|---|---|---|
| New Medicare Part B enrollees | COLA mostly offset | Not protected by Hold Harmless until premiums are deducted from Social Security |
| Direct-pay Part B (not deducted) | COLA offset | Hold Harmless usually doesn’t apply if you’re billed directly |
| High-income beneficiaries (IRMAA) | Smaller net raise | IRMAA surcharges can rise and aren’t covered by Hold Harmless |
| Dual-eligibles (Medicaid pays Part B) | Minimal change in net Social Security | Premium changes are handled outside your check, so your deposit may look flat |
| Beneficiaries with overpayment recovery or withholdings | Reduced net increase | SSA can withhold to recover debts; federal/state offsets may apply |
| Families near the Maximum Family Benefit | Smaller/limited increases for auxiliaries | The family cap can restrict total payable on the worker’s record |
How to prepare so your raise isn’t eaten up
- Review your my Social Security account: Confirm your current gross benefit, any withholdings, and message center notices.
- Check Medicare notices: Watch for Part B and IRMAA letters that show your upcoming premium.
- Tackle overpayments early: If you have an overpayment, request a reasonable repayment plan so it doesn’t swallow your raise.
- Track taxable income: If you’re near an IRMAA threshold, mindful tax planning may help avoid a higher bracket next year.
- Verify how your premium is paid: If possible, have Part B premiums deducted from Social Security to benefit from Hold Harmless protection.
Key takeaways
- COLA is not cancelled. It’s applied annually to help benefits keep pace with inflation.
- Some people may see no net increase due to Medicare Part B, IRMAA, overpayment recovery, or the family maximum.
- Proactive steps—checking notices, planning for IRMAA, and arranging overpayment repayment—can help you retain more of your raise.
The idea that SSA is “cancelling COLA” is misleading. COLA will still be applied, but some beneficiaries—especially those not covered by Hold Harmless, those facing IRMAA surcharges, or those with withholdings—might feel no net change.
By reviewing your notices, managing overpayments, and ensuring premiums are deducted from Social Security when possible, you can maximize the benefit of your next cost-of-living adjustment.
FAQs
Why does my deposit look the same even after a COLA?
Because deductions (like Part B premiums, IRMAA, or withholding for overpayments) can absorb the raise, leaving your net unchanged.
How do I know if Hold Harmless protects me?
You’re typically protected if your Part B premium is deducted from your Social Security benefit in December and January. New enrollees, direct-pay, many dual-eligibles, and IRMAA payers are commonly not protected.
Can I stop SSA from taking my whole raise for an overpayment?
You can request a lower withholding amount or, in some cases, a waiver. Act early so the adjustment is in place when your next year’s payment arrives.
