The 2018 COLA was 2 percent, and most SSDI recipients received it

Social Security announced a 2 percent cost of living adjustment (COLA) for 2018, effective December 2017. If you were receiving SSDI (Social Security Disability Insurance) in December 2017, your January 2018 payment included that increase. The raise was applied automatically — you did not have to do anything to receive it.

The 2 percent figure came from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured from the third quarter of 2016 to the third quarter of 2017. Social Security calculates COLA each year using this same method, comparing prices over that specific nine-month window. The result determines whether benefits go up, stay flat, or in rare cases go down.

Not every SSDI recipient saw the increase in their January 2018 check. A small group — people who had recently become may be able to access or whose benefits had been suspended — may have received their first payment or a resumed payment in January 2018 at the new rate, which can look different from what they expected.

Key Takeaways

  • The 2018 COLA of 2 percent was applied to all active SSDI payments in January 2018 unless your case had a specific hold or suspension.
  • You did not need to report anything or take action to receive the increase — it was automatic for anyone receiving a check in December 2017.
  • The increase was calculated using the Consumer Price Index from mid-2016 to mid-2017, a method set by federal law.
  • If you were in a work incentive period, overpayment recovery, or had a suspended benefit, the 2 percent still applied to your benefit amount, but your actual payment may have been reduced by offsets.

Who was not included in the 2018 COLA

A very small number of SSDI recipients did not receive the 2 percent increase in January 2018. This happened if your benefit had been suspended before December 2017 — for example, if you were working and earning above the substantial gainful activity (SGA) limit, or if your case was under review. When your benefit resumed later, it would include the 2 percent, but you would not receive a lump-sum payment for the months you were suspended.

If you were in a work incentive period — such as the Trial Work Period or Extended may be able to access Period — the 2 percent increase was still applied to your underlying benefit amount. However, your actual check might have been smaller or zero because of how work incentives interact with earnings. The increase was there; it was just offset by your work income.

Supplemental Security Income (SSI) recipients also received a 2 percent COLA in 2018, but the rules are slightly different because SSI is means-tested. If you received both SSDI and SSI, you would have seen the increase on both payments.

How the 2018 COLA affected your Medicare premiums

Most SSDI recipients who turned 65 and moved to regular Social Security retirement benefits were automatically enrolled in Medicare Part B (medical insurance). In 2018, the standard Part B premium was $134 per month for most people, though some paid more based on income.

If you were already on Medicare Part B before 2018, your premium may have stayed the same or increased depending on your income from two years prior (2015 in this case). This is called income-related monthly adjustment amounts (IRMAA). The 2 percent COLA to your SSDI benefit did not directly change your Medicare premium, but it could have affected your total out-of-pocket cost if your benefit crossed an income threshold for IRMAA purposes.

For most people, the 2 percent increase to SSDI was larger than any Medicare premium increase, so the net effect was a slightly larger check. But if you had high income from other sources, your Medicare costs could have risen independently of the COLA.

Why 2018 saw only a 2 percent increase

The 2 percent COLA in 2018 was modest compared to some years. From 2009 to 2015, there were three years with zero COLA because inflation was so low. The 2 percent in 2018 reflected moderate inflation during the measurement period (mid-2016 to mid-2017).

Congress does not vote on COLA each year. The increase is calculated by a formula written into the Social Security Act. The formula uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) — a measure of what urban workers actually pay for goods and services. If prices go up, COLA goes up. If prices stay flat or fall, COLA stays flat or goes down (though it has never gone below zero in practice).

The 2 percent figure was the same for all Social Security beneficiaries — SSDI, retirement, and survivor benefits. There is no separate COLA calculation for disability; everyone on the Social Security rolls received the same percentage increase.

What to do if your January 2018 payment seemed wrong

If your January 2018 SSDI payment did not include the 2 percent increase, or if it was smaller than you expected, the first step is to contact Social Security directly. Call 1-800-772-1213 (TTY 1-800-325-0778) and ask to speak with a representative about your 2018 benefit amount. Have your Social Security number and a recent benefit statement ready.

Common reasons a payment might not reflect the full 2 percent include: a suspension that was still in effect in January, an overpayment being recovered from your check, a work incentive offset, or a change in your case status that happened between December 2017 and January 2018. A Social Security representative can explain which of these applied to you and whether the amount was correct.

If you believe there was an error, you can request a detailed benefit calculation from Social Security. This document shows exactly how your benefit was computed and what deductions were applied. Requesting this in writing (by mail or through your my Social Security account online) creates a record if you later need to appeal.

How the 2018 COLA affected work incentives and earnings limits

The 2018 COLA did not change the substantial gainful activity (SGA) limit — the amount of monthly earnings that triggers a benefit suspension. In 2018, the SGA limit was $1,180 per month for non-blind workers and $1,970 for blind workers. These limits are set separately from COLA and are adjusted each year based on wage growth, not inflation.

However, the 2 percent increase to your SSDI benefit meant your total household income rose by 2 percent, which could have affected your Medicaid status in some states. If you were receiving Medicaid based on your SSDI benefit amount, and your state uses SSDI as the basis for Medicaid income limits, the increase might have pushed you slightly closer to a threshold. In most cases this did not cause a loss of coverage, but it is worth checking with your state Medicaid office if you were near a limit.

Frequently Asked Questions

Did I have to do anything to get the 2018 COLA?

No. The 2 percent increase was applied automatically to all active SSDI payments in January 2018. You did not need to contact Social Security, file a form, or take any action. If you were receiving a check in December 2017, the January 2018 check included the increase.

What if I started SSDI in 2018 — did I get the 2 percent?

If your first SSDI payment was in January 2018 or later, it was calculated using the 2018 benefit formula, which already included the 2 percent COLA. You did not receive a separate increase because you were not receiving benefits in December 2017. Your benefit was straightforward set at the 2018 rate from the start.

Can I get back pay for months I was suspended in 2017?

No. If your benefit was suspended before January 2018 — for example, because you were working — you do not receive retroactive payments for those months. When your benefit resumes, it will include the 2 percent COLA, but only going forward from the month it resumes.

Did the 2018 COLA affect my Medicaid or food stamps?

It may have. If your state uses your SSDI benefit amount to determine Medicaid or SNAP (food stamps) income limits, the 2 percent increase could have affected your status. Contact your state Medicaid office or local SNAP office to confirm whether the increase changed your case. In most cases, the small increase did not cause a loss of benefits.

Why was the 2018 COLA only 2 percent when prices seemed to go up more than that?

The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) measured from the third quarter of 2016 to the third quarter of 2017. That specific nine-month period saw 2 percent inflation on average. Different measures of inflation (like the overall CPI or the Personal Consumption Expenditures index) can show different rates, but Social Security uses the CPI-W by law.