The 2019 SSDI payment increase was 2.8 percent
Social Security announced in October 2018 that benefits would rise by 2.8 percent starting January 2019. This increase, called a Cost of Living Adjustment (COLA), happens once per year and is tied to inflation measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers.
If you received SSDI in December 2018, your January 2019 payment would be 2.8 percent higher. The exact dollar amount of your increase depends on what you were receiving before the adjustment. Someone getting $1,000 per month would see an increase of $28; someone getting $1,500 would see an increase of $42.
The 2.8 percent figure applied to all Social Security beneficiaries — those on SSDI, those on retirement benefits, and those receiving Supplemental Security Income (SSI). There were no exceptions based on age, work history, or reason for benefit.
Key Takeaways
- The 2019 COLA was 2.8 percent, meaning your January 2019 payment was 2.8 percent higher than your December 2018 payment.
- COLA amounts change every year based on inflation and are announced in October of the prior year.
- The increase applies automatically — you do not need to contact Social Security or take any action to receive it.
- If you were on SSI rather than SSDI, your increase may have been reduced or eliminated if your countable income or resources exceeded the limit.
How the COLA is calculated each year
Social Security calculates the annual COLA by comparing the Consumer Price Index from the third quarter of one year to the third quarter of the previous year. If inflation went up, benefits go up by that same percentage. If inflation was flat or negative, there is no COLA — though this has happened only three times since 1975.
The calculation is automatic and does not involve a decision by Congress or the Social Security Administration. Once the number is set, it applies to every beneficiary the same way. This means the COLA you receive depends entirely on what inflation did that year, not on your individual circumstances or how much you earn.
What changed in your bank account in January 2019
If you had direct deposit set up — which Social Security strongly encourages — your January payment arrived on your regular payment date and was 2.8 percent larger than December. You would have seen the increase reflected in your bank account without doing anything.
If you received a paper check, the January check was mailed on your regular schedule and was for the higher amount. If you received benefits through a representative payee (someone authorized to manage your benefits on your behalf), the payee's account received the increased amount.
Social Security also mailed a notice in December 2018 or early January 2019 showing your new payment amount. If you did not receive a notice and your payment did not increase, contact Social Security to verify your account was processed correctly.
COLA does not affect Medicare premiums the same way
While your SSDI payment went up 2.8 percent in 2019, your Medicare Part B premium did not increase by the same amount. Medicare premiums are set separately and can rise faster or slower than your COLA.
For 2019, Medicare Part B premiums stayed the same as 2018 for most beneficiaries — $135.50 per month — because of a rule that prevents premiums from rising faster than Social Security benefits. However, beneficiaries who were new to Medicare or had higher incomes paid more. The premium increase, when it happens, is deducted directly from your SSDI payment before you receive it.
SSI recipients saw a different outcome
If you received Supplemental Security Income (SSI) instead of SSDI, the 2.8 percent COLA applied to your federal SSI payment amount. However, your actual payment increase depended on your other income and resources.
SSI is a needs-based program, meaning your payment is reduced dollar-for-dollar if you have other income. If you worked or received other benefits, the COLA increase to your SSI might have been partially or fully offset by a reduction in your payment. Additionally, if your countable resources exceeded $2,000 (or $3,000 for a couple), you would not have received SSI at all, regardless of the COLA.
Planning for future COLA increases
The 2019 COLA of 2.8 percent was higher than the average COLA over the previous decade, which was closer to 1.5 percent per year. Future COLAs depend on inflation and cannot be predicted with certainty, though economists and policy analysts publish estimates in the fall.
If you are working and using a work incentive like the Student Earned Income Exclusion or Plan to Achieve Self-Support (PASS), a COLA increase does not affect how those programs count your earnings. Your work incentive rules stay the same regardless of the benefit increase.
Frequently Asked Questions
Did I have to do anything to get the 2019 COLA increase?
No. The increase was automatic. Social Security applied it to every beneficiary's account in January 2019 without requiring any action on your part. If your payment did not increase, contact Social Security to report the error.
Why was the 2019 COLA only 2.8 percent when inflation felt higher?
The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, which measures the average price change for a specific basket of goods and services. It does not measure the inflation you personally experience, which may differ depending on what you buy and where you live.
Does the COLA increase affect my Medicaid coverage?
In most states, a COLA increase to your SSDI does not affect your Medicaid coverage because SSDI recipients are categorically may be able to access for Medicaid. However, if you are on SSI and your payment increased, your countable income may have risen above the SSI limit, which could affect your Medicaid in some states.
What if I was not receiving SSDI in December 2018 but started in 2019?
Your first payment would be at the 2019 rate, which already includes the COLA. You would not receive a separate adjustment — the 2.8 percent increase was already built into the benefit amount Social Security calculated for you.