As we head into 2026, millions of Americans who rely on Social Security and Supplemental Security Income (SSI) will see changes to their benefits due to the annual Cost-of-Living Adjustment (COLA). These yearly increases are designed to help beneficiaries keep up with rising prices and ensure these essential programs continue to provide meaningful support.

This year’s COLA increase of 2.8% is slightly higher than last year’s adjustment and will result in benefit increases across Social Security, Supplemental Security Income, Medicaid, and Medicare. Below, we outline the key changes to expect and what they may mean for you or the person whose finances you help manage.

Key payment adjustments for 2026

Several updates will take effect beginning with payments issued at the end of December 2025. Here are some of the most important figures to know:

• Federal SSI payment standard (Federal Benefit Rate):
  
  • $994 per month for an individual
  • $1,491 per month for a couple
  • $498 per month for an essential person (a qualifying household member providing care or support)
• Social Security Disability Insurance (SSDI) thresholds:
  
  • $1,690/month for non-blind individuals
  • $2,830/month for blind individuals
  • $1,210/month for the Trial Work Period threshold
• Estimated average Social Security retirement benefit: $2,071 per month for individual retirees
• Annual gift exclusion and ABLE account contribution limit: $19,500 for 2026

Medicaid adjustments

Some states have begun publishing their projected 2026 Medicaid spousal-impoverishment standards, but the full nationwide federal update has not yet been released. The Centers for Medicare and Medicaid Services (CMS)  last issued updated standards in May 2025, and it’s common for federal guidance to be refreshed or clarified mid-year. For now, here are the most recent projected amounts some states are using for planning purposes:

• Community Spouse Resource Allowance (CSRA):
  
  • Minimum $32,864 | Maximum $164,320
• Monthly Maintenance Needs Allowance (MMNA):
  
  • Minimum $2,628 | Maximum $4,059
  • (Alaska Min: $3,288.50 | Hawaii Min: $3,027.50)
    

These standards help protect a healthy spouse from losing financial stability when their partner needs long-term care. If you or a loved one rely on Medicaid long-term care benefits, it’s a good idea to check your state Medicaid office or watch for the official CMS announcement once it is released.

Medicare updates

Medicare premiums and deductibles are also rising slightly in 2026. While these increases are modest, they can still impact monthly budgets – especially for beneficiaries on fixed incomes.

Key premiums & deductibles:

• Part B monthly premium: $202.90
• Part B annual deductible: $283
• Part A inpatient hospital deductible: $1,736

Coinsurance/cost-sharing for longer hospital stays:

• Days 61-90: $434/day 
• Lifetime reserve days: $868/day 
• Skilled nursing facility (days 21-100): $217/day

Note that these numbers are for low-income beneficiaries; you can find more details about Medicare changes on the Centers for Medicare & Medicaid Services website.

What this means for beneficiaries and their caregivers

While the 2026 COLA brings a welcome increase, it’s also a good reminder to review budgets, benefits, and eligibility to make sure everything stays on track.

Here are a few practical steps for beneficiaries, family members, and fiduciaries:

1. Review benefit amounts and update budgets: Confirm that new benefit amounts are reflected in January 2026 payments and adjust spending plans as needed. Even small increases can make a difference in covering essentials like rent, food, or medical costs.
2. Stay within SSI resource limits: Resource limits remain the same: $2,000 for an individual and $3,000 for a couple. Tracking balances closely helps preserve eligibility and prevents benefit interruptions.
3. Coordinate across programs: A higher benefit may affect income-based supports like Medicaid, housing assistance, or SNAP. It’s worth checking how the new amounts interact with other programs you or your loved one rely on.
4. Help safeguard benefits through managed spending: Tools like the True Link Visa® Prepaid Card help fiduciaries, representative payees, and caregivers manage funds for a client or loved one. With custom controls and real-time tracking, True Link’s Spending Monitor can help you enable benefits to be used for approved expenses – such as food, utilities, or transportation – while reducing the risk of misuse or fraud.

The 2026 Cost-of-Living Adjustments provide a modest but meaningful boost for millions of Americans who depend on public benefits. Staying informed about these updates, and taking time to adjust budgets, verify payments, and safeguard eligibility, can help you plan for the year ahead.