The 2019 SSDI payment increase was 2.8 percent

Social Security announced in October 2018 that monthly SSDI payments would rise by 2.8 percent starting in January 2019. This increase, called a Cost of Living Adjustment (COLA), meant that someone receiving $1,000 per month would receive $1,028 instead. The exact dollar amount of your increase depended on what you were receiving before the adjustment.

The 2.8 percent figure came from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation across the economy. Social Security calculates COLA each year using inflation data from the third quarter — July, August, and September. Because inflation was relatively modest in 2018, the 2019 increase was smaller than some years but larger than the 2017 adjustment, which was only 0.3 percent.

You did not have to do anything to receive this increase. If you were on SSDI in December 2018, the higher payment appeared in your January 2019 check automatically. The Social Security Administration sent notices in the mail explaining the new amount, though some people received them late or not at all.

Key Takeaways

  • The 2019 COLA raised all SSDI payments by 2.8 percent, with the increase taking effect in January 2019.
  • COLA is calculated using inflation data from July through September of the prior year, so it reflects actual price changes in the economy.
  • You received the increase automatically if you were receiving SSDI in December 2018 — no action was required on your part.
  • The amount your payment went up depended on what you were receiving before the adjustment; a $1,000 payment became $1,028.

Why SSDI payments change each year

SSDI payments are tied to inflation because the cost of living — rent, food, medicine, utilities — rises over time. Without an annual adjustment, the same dollar amount would buy less each year, and people on fixed incomes would gradually lose purchasing power. Congress built COLA into the Social Security law in 1975 to prevent that erosion.

The adjustment is not automatic in the sense that Congress votes on it each year. Instead, a formula built into law calculates it based on the Consumer Price Index. If inflation is zero or negative, COLA is zero; you do not receive a decrease. In years with high inflation, COLA is higher. The 2.8 percent in 2019 reflected the inflation that actually occurred in the economy during the measurement period.

SSDI recipients are not the only people who receive COLA. Supplemental Security Income (SSI) payments, railroad retirement benefits, and federal employee pensions all adjust the same way. Veterans' benefits use a different inflation measure but also adjust annually.

How the 2019 increase compared to other years

The 2019 COLA of 2.8 percent was moderate by historical standards. In 2008, when inflation spiked, COLA was 5.8 percent. In 2011 and 2016, there was no increase at all because inflation was too low. The year before 2019, in 2018, COLA was only 2.0 percent. The year after, in 2020, it was 1.3 percent.

These variations matter because they affect how much your income grows year to year. Someone who received SSDI throughout the 2010s saw their payment rise some years and stay flat in others, depending entirely on what happened with inflation. There is no way to predict COLA in advance; the Social Security Administration announces it in October based on actual inflation data from the summer months.

What the 2019 increase meant for Medicare premiums

For many SSDI recipients, the 2019 COLA increase was partially offset by higher Medicare Part B premiums. Medicare Part B covers doctor visits and outpatient care, and the premium is deducted directly from your Social Security check each month. In 2019, the standard Part B premium rose to $135.50 per month, up from $134 in 2018.

However, there is a rule called the hold-harmless provision that protects most people. If your Medicare premium increase is larger than your COLA increase, Social Security holds your total payment flat — you do not lose money overall. In 2019, this rule protected people who were already on Medicare before 2015, because their premium increase was smaller than their COLA increase. People who enrolled in Medicare after 2015 did not have this protection and saw their net increase reduced by the premium rise.

This is why two people receiving the same SSDI payment might see different net increases in January 2019. Someone protected by hold-harmless received the full 2.8 percent increase. Someone not protected saw part of it go to higher Medicare premiums.

How to find out what your 2019 payment was

Social Security mailed notices in December 2018 or early January 2019 showing your new payment amount. If you did not receive a notice, you can check your payment online through your my Social Security account at ssa.gov. You will need to create an account with a username and password, or sign in with an existing account.

Your payment stub or bank deposit record also shows the amount you received starting in January 2019. If you receive payments by direct deposit, your bank statement will show the new amount. If you receive a check, the check itself shows the payment amount.

If you believe your payment is wrong, contact Social Security at 1-800-772-1213. Have your Social Security number ready and be prepared to explain what amount you expected. Social Security can review your record and correct errors, though this process can take several weeks.

SSDI payments after 2019

The 2019 increase was one of many annual adjustments. Each January, SSDI payments rise or stay flat based on that year's COLA. In 2020, COLA was 1.3 percent. In 2021, it was 1.3 percent again. In 2022, it jumped to 8.7 percent because inflation rose sharply. These changes mean your payment amount is different each year, and you should check your notice each October or November to see what the next year's adjustment will be.

You can find the COLA announcement each October on the Social Security Administration website. The announcement includes the percentage increase and usually explains what caused the inflation change. This information helps you plan your budget for the coming year.

Frequently Asked Questions

Did I have to do anything to get the 2019 increase?

No. If you were receiving SSDI in December 2018, the increase was added to your payment automatically in January 2019. You did not need to contact Social Security or submit any paperwork.

What if I didn't receive a notice about the 2019 increase?

Social Security mailed notices but some arrived late or went to old addresses. You can check your payment amount through your my Social Security account online, or call 1-800-772-1213 to confirm what you should be receiving.

Did my Medicare premium go up at the same time as my SSDI increase?

Medicare Part B premiums did rise in 2019, but the hold-harmless rule protected most people who were on Medicare before 2015 — their net payment did not decrease. If you enrolled in Medicare after 2015, your premium increase was not fully protected and reduced your net increase.

How much did a typical SSDI payment go up in 2019?

The increase was 2.8 percent of whatever you were receiving. Someone getting $1,000 per month received an additional $28. Someone getting $1,500 received an additional $42. The exact dollar amount depended on your individual payment.

Will SSDI payments keep going up every year?

SSDI payments adjust each January based on inflation, but the amount varies. Some years the increase is larger, some years smaller, and in rare years there is no increase at all. You can find out the next year's adjustment in October when Social Security announces the COLA.