The 2019 SSDI increase was 2.8 percent

Social Security announced in October 2018 that the 2019 cost of living adjustment (COLA) would be 2.8 percent. This was the largest increase since 2012. If you received SSDI in December 2018, your January 2019 payment reflected this increase automatically — you did not need to do anything to receive it.

The actual dollar amount of your increase depended on your current benefit. Someone receiving $1,000 per month would see an increase of $28. Someone receiving $1,500 would see an increase of $42. The Social Security Administration (SSA) calculated each person's new amount based on their individual benefit rate.

This adjustment applied to all SSDI beneficiaries, including disabled workers, widow(er)s, and adult children of disabled or deceased workers. It also applied to Supplemental Security Income (SSI) recipients, though SSI has different rules about how the increase interacts with other income and resources.

Key Takeaways

  • The 2019 COLA of 2.8 percent was the largest increase in seven years, reflecting higher inflation than in the years when ready before.
  • Your new payment amount appeared in your January 2019 deposit with no action required on your part.
  • The dollar increase varied by individual benefit amount, but the percentage was the same for everyone: 2.8 percent.
  • If you also received Medicare, your Part B premium may have increased, which could offset some or all of your SSDI increase.

How the 2019 COLA was calculated

The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation across a basket of goods and services. Social Security compares the average CPI-W for the third quarter of the current year to the average for the third quarter of the previous year. If inflation occurred, the percentage increase becomes the COLA.

In 2018, inflation was higher than it had been in several years, which is why the 2019 COLA jumped to 2.8 percent. By contrast, 2017 saw only a 2.0 percent increase, and 2016 saw no increase at all. The formula is the same every year — it is not a decision made by Congress or SSA leadership, but a mathematical result of the CPI-W data.

What happened to your Medicare Part B premium

If you were 65 or older and enrolled in Medicare Part B, your premium may have increased in 2019. The standard Part B premium rose to $135.50 per month, up from $134 in 2018. For most beneficiaries, this premium is deducted directly from the SSDI payment.

This means your net increase — the amount that actually hit your bank account — could have been less than the full 2.8 percent. If your Part B premium increased by $1.50 and your SSDI increased by $28, your net gain was $26.50. Some beneficiaries with higher incomes or those who delayed enrolling in Part B faced even larger premiums and smaller net gains.

If you were under 65 or not enrolled in Medicare Part B, this did not affect you. Your full 2.8 percent increase went into your account.

How to verify your 2019 payment amount

You could check your new payment in several ways. The easiest was to log into your my Social Security account at ssa.gov and view your payment history. This showed your December 2018 payment and your January 2019 payment side by side, so you could see the exact dollar increase.

You could also call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) and ask a representative to read your current benefit amount. If you received a paper statement in the mail, it would have shown your new amount starting in January 2019.

If your January 2019 payment did not reflect a 2.8 percent increase, contact Social Security to report the discrepancy. Errors were rare, but they did happen, especially for beneficiaries with complex payment histories or those who had recently had a work incentive plan in place.

How the 2019 COLA affected SSI recipients differently

If you received Supplemental Security Income (SSI) instead of SSDI, or in addition to SSDI, the 2019 COLA applied to your SSI federal benefit rate as well. However, SSI has a resource limit ($2,000 for individuals, $3,000 for couples in 2019) and counts income differently than SSDI does.

For SSI recipients, an increase in benefits could trigger a review of your resources or other income. If you were close to the resource limit, the increase itself did not push you over — SSA does not count the COLA increase as new income. However, if you had other income or resources that changed, SSA might have reviewed your case.

SSI also has a different payment schedule than SSDI. SSI payments are made on the first, third, or fourth of the month depending on your claim number, while SSDI payments follow a different schedule based on birth date. Make sure you knew which program you were receiving before assuming when your increase would appear.

What changed for work incentives and earnings

The 2019 COLA did not change the rules around work incentives or how much you could earn while still receiving SSDI. The Substantial Gainful Activity (SGA) limit — the earnings threshold above which SSA considers you to be working — remained at $1,220 per month for non-blind disabled workers and $2,040 for blind workers in 2019.

If you were using a work incentive like the Plan to Achieve Self-Support (PASS) or Impairment Related Work Expenses (IRWE), your benefit calculation remained the same. The COLA increased your base benefit, but the offset rules and work incentive calculations did not change.

Frequently Asked Questions

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

No. The increase was automatic and applied to your account in January 2019. You did not need to contact Social Security, submit paperwork, or take any action. If you had direct deposit set up, the new amount appeared in your account on your regular payment date.

What if I disagreed with the amount of my increase?

Contact Social Security at 1-800-772-1213 to report the issue. Have your December 2018 and January 2019 payment amounts ready. SSA can review your account and correct any errors. If you believe the COLA percentage itself was wrong, that is set by law and cannot be changed for an individual.

Did the 2019 COLA affect my Medicaid coverage?

That depends on your state. Some states use SSDI income limits to determine Medicaid may be able to access, and a COLA increase could have affected your status. Contact your state Medicaid office to ask whether the increase changed your coverage. In most cases, a COLA increase alone does not cause loss of Medicaid, but it is worth checking.

How does the 2019 COLA compare to previous years?

The 2.8 percent increase in 2019 was the largest since 2012. The years when ready before saw much smaller increases: 2018 was 2.0 percent, 2017 was 2.0 percent, 2016 was 0 percent, and 2015 was 0 percent. The variation reflects changes in inflation measured by the CPI-W.