By Jacquelyn Burrer
The Dallas Morning News
(TNS)
Sept. 26 — Social Security disability beneficiaries could see their monthly payments increase next year due to the rising cost of living, but increasing healthcare costs and Medicare premiums could limit how much of that increase people actually feel.
For people who rely on Social Security Disability Insurance, the cost-of-living adjustment comes alongside rising healthcare expenses that can be especially difficult to manage, said Stephanie Akpa, head of policy and public affairs at Atticus. The law firm provides legal-aid services that help individuals apply for Social Security Disability Insurance.
“Cost of living increases hit everyone,” Akpa said. “They impact everyone broadly, but they’re going to impact people with disabilities especially hard.”
Here’s what to know about the 2027 cost-of-living adjustment and what it means for Social Security disability benefits.
Who qualifies for Social Security disability benefits?
The Social Security Administration has two primary disability benefit methods, including Social Security Disability Insurance and Supplemental Security Income.
To qualify for Social Security Disability Insurance, an individual generally must have a medical condition that stops or limits their ability to work for 12 months or longer, or will result in death. Additionally, the applicant must have worked at least five of the last 10 years.
About 8.6 million people receive Social Security Disability Insurance, according to the administration.
Individuals without a work history may qualify instead for Supplemental Security Income, which is a needs-based program providing monthly benefits to people with limited income and resources.
What does the 2027 COLA mean for Social Security disability benefits?
Under federal law, Social Security benefits are adjusted when the cost of living increases. These benefits are evaluated annually by the Social Security Administration using the consumer price index report, which tracks inflation data.
Akpa said disability beneficiaries will be “disproportionately impacted” by the cost-of-living adjustment, as people with disabilities can face additional expenses not measured in the consumer price index.
The AARP, a nonprofit serving adults ages 50 and older, projects Social Security benefits will see a 3.5% cost-of-living adjustment in 2027, roughly matching the consumer price index that increased nationally by 3.4% in August.
A 3.5% COLA would raise the average disabled worker’s monthly benefit, which currently sits around $1,635, by about $58 per month. That would bring the average monthly benefit to roughly $1,693, before deductions.
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However, Akpa said the benefits disabled workers actually see from the adjustment can be impacted by Medicare premium changes, as well as higher healthcare costs.
“The COLA does help,” Akpa said. “It’s really important, but it’s not necessarily going to make up the difference for folks who have disabilities and are managing their healthcare.”
Most Medicare beneficiaries deduct the standard Part B monthly premium—the portion of Medicare that provides standard health insurance—out of their Social Security benefits. According to the 2026 Medicare Trustees Report, the estimated monthly Part B premium for 2027 is $209.50, roughly a 3.3% increase from the 2026 premium of $202.90.
Healthcare costs are also generally expected to increase next year, Akpa said, especially for out-of-pocket medical expenses. A recent survey from Mercer evaluating employee-sponsored health plan prices found that health benefit costs are expected to increase 8.2% in 2027, the largest yearly increase since 2003.
What should disability beneficiaries do now?
Akpa recommends people receiving disability benefits keep track of the expected cost-of-living adjustment so they can better anticipate what their income and expenses will look like in 2027.
Next year’s cost-of-living adjustment will be announced in October, but a specific date is not available yet. The 2027 COLA cannot be calculated until September’s inflation data is released, which is currently scheduled for Oct. 14, according to the Bureau of Labor Statistics.
Photo credit: Social Security Administration/Facebook
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© 2026 The Dallas Morning News. Visit www.dallasnews.com. Distributed by Tribune Content Agency LLC.
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