February 2023 brought a 8.7% cost-of-living adjustment to SSDI payments

In February 2023, people receiving Social Security Disability Insurance saw their monthly payment increase by 8.7% compared to what they received in 2022. This was the largest adjustment in four decades. The increase took effect on the second Wednesday of February, which that year was February 8th. The exact dollar amount of your increase depended on what you were receiving before the adjustment.

This adjustment, called a cost-of-living adjustment (COLA), happens once per year and is meant to help benefits keep pace with inflation. The Social Security Administration announced the 8.7% figure in October 2022, so people had several months' notice before the February payment arrived.

Key Takeaways

  • The February 2023 COLA of 8.7% was the largest annual increase since 1981, reflecting high inflation in 2022.
  • The increase appeared in your payment on the second Wednesday of February 2023, which was February 8th.
  • Your new payment amount for 2023 was calculated by taking your 2022 payment and multiplying it by 1.087.
  • If you also received Medicare, your Part B premium may have increased separately, which could have offset some of the COLA increase.

How the 8.7% increase was calculated

Social Security calculates the annual COLA by measuring inflation using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Social Security Administration 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 has occurred, the percentage increase becomes that year's COLA.

For 2023, the third quarter of 2022 showed significantly higher inflation than the third quarter of 2021, which is why the adjustment was 8.7%. This meant that if you received $1,000 per month in January 2023, your February 2023 payment was approximately $1,087. The actual increase in your account depended on your exact payment amount.

When the February 2023 payment arrived

SSDI payments are sent on a schedule based on your birth date. The second Wednesday of each month is the standard payment day for most beneficiaries born on the 11th through the 20th of any month. In February 2023, that date was February 8th.

If you were born on the 1st through the 10th of any month, your payment arrived on the first Wednesday of February 2023, which was February 1st. If you were born on the 21st through the 31st, your payment arrived on the third Wednesday, which was February 15th. The 8.7% increase applied to whichever payment date you normally receive.

Medicare Part B premiums and the February 2023 COLA

Many people receiving SSDI also have Medicare Part B, which covers doctor visits and outpatient care. In 2023, the Part B premium increased to $164.90 per month for most beneficiaries, up from $170.10 in 2022. However, some people saw a different premium amount depending on their income.

If your SSDI payment increased by $87 (on a $1,000 base) but your Medicare Part B premium rose by $5.20, your net increase in take-home payment was smaller than the 8.7% figure suggests. The Social Security Administration has a rule called "hold harmless" that prevents your SSDI payment from decreasing when Medicare premiums rise, but it does mean the COLA increase can be partially offset.

Why 2023 had such a large adjustment

The 8.7% COLA in 2023 reflected the high inflation that occurred throughout 2022. Prices for groceries, gasoline, housing, and other essentials rose sharply during that year. The Consumer Price Index, which measures these price changes, showed the largest year-over-year increases in four decades.

COLA adjustments are automatic and are set by law — the Social Security Administration does not decide the percentage. The formula is fixed: it measures inflation and applies that same percentage to all SSDI payments. Because inflation was high in 2022, the 2023 adjustment was correspondingly large.

How to verify your February 2023 payment

You can check your SSDI payment history and verify the February 2023 amount by creating an account on ssa.gov and viewing your Social Security Statement. This online tool shows all payments you have received, including the exact date and amount of your February 2023 payment.

If you receive your payment by direct deposit, the money appeared in your bank account on your scheduled payment date. If you receive a paper check, it was mailed several days before the payment date. If you did not receive the expected increase or if your payment was lower than you anticipated, contact the Social Security Administration at 1-800-772-1213 to ask about your specific account.

Frequently Asked Questions

Did everyone receiving SSDI get the same 8.7% increase in February 2023?

Yes, everyone receiving SSDI got the same 8.7% increase applied to their individual payment amount. The percentage was the same for all beneficiaries, but the dollar amount of the increase varied depending on how much each person was receiving before February.

What if I didn't see an 8.7% increase in my February 2023 payment?

If your increase was smaller, it may have been reduced by a Medicare Part B premium increase or another deduction. If you received no increase at all or if your payment decreased, contact Social Security at 1-800-772-1213 to review your account, as this would be unusual.

Does the February 2023 COLA affect future years' payments?

No. Each year's COLA is calculated fresh based on that year's inflation. The 2023 COLA of 8.7% became your new baseline payment amount, but your 2024 payment increase was based on inflation between mid-2023 and mid-2024, which was a different figure.

Can I find out what my payment would have been without the COLA?

Your Social Security Statement online shows your payment history month by month. By comparing your January 2023 payment to your February 2023 payment, you can see the exact dollar amount of your increase and verify it matches 8.7% of your January amount.