CAN A VETERAN LOSE THEIR VA BENEFITS? HERE’S WHAT YOU NEED TO KNOW


By Buddy Blouin
can a veteran lose their benefits

Veterans are provided benefits they’ve earned following a life of service, but what happens when this compensation is taken away? Can you lose access to VA benefits you’ve earned as a Veteran? Although uncommon, we’re breaking down scenarios Vets should be aware of to avoid misunderstandings.

Can a Veteran Lose Their VA Benefits?

The short answer is that yes, Veterans can lose VA benefits in a number of ways.

However, in actuality, it’s a rare or conditioned-based scenario that would have to arise.

For the majority of Vets, the loss of VA benefits isn’t a real threat but there still are some common and not-so-common scenarios everyone should be aware of.

Keep in mind that Veterans with disability benefits from the VA for ten or more years are also afforded special protections from having them terminated but things like committing fraud or major errors can still alter how much you receive.

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GI Bill Benefits

If you’re using GI Bill benefits, your benefits can expire. You also have a limited amount of credits to use but your expiration will depend on when you were discharged:

Disability Reductions

Depending on your condition, especially if it’s expected to improve within the first five years of receiving benefits, you may lose benefits.

For example, since your compensation is based on your VA disability rating, if you start to get better, expect fewer benefits.

You’ll be notified by the VA to schedule a medical reexamination and if you don’t go, you’ll either have a reduction or lose your benefits altogether.

The VA is required to review your full medical history before lowering your disability rating but depending on their findings, you could lose benefits.

Time plays a role here too. So, if you’ve had a VA disability rating for five years or more, the only way it can be reduced is if you are going to permanently improve.

For Vets receiving benefits for over 20 years, unless fraud is involved, your rating is protected.

In cases of Veterans who have a 100% rating, those who have received benefits for more than 10 years can’t have them reduced unless fraud or a major error by the VA has happened.

Furthermore, those with a 100% VA rating may remain with this level of benefits, barring fraud or other circumstances, if they are unable to work.

Incarceration

When it comes to Veterans who are incarcerated, things get a bit more complicated, but there are a few important things to remember:

  • Innocent Veterans who are still in the legal system’s process will receive benefits.
  • While it varies depending on the crime and where the crime was committed, you’re likely going to receive VA benefits after prison if they are reduced or stopped while serving time.

Veterans who are incarcerated can have their benefits cut or stopped; however, this applies to things like disability compensation or pensions.

Other benefits, including healthcare, education, and employment support, may remain available even while serving time.

Veterans also gain resources in these cases through the Health Care for Re-entry Veterans (HCRV) program helping to prevent homelessness and the Veteran Justice Outreach (VJO), aiming to reduce incarceration while helping the mental health of Vets.

Even if you do have your benefits reduced because of incarceration, the VA must let you know and you’re going to have an opportunity to appeal their decisions.

If you’re in prison for a felony, after 60 days of incarceration, disability and pension benefits can stop but they’re put back into place once you’re released.

Remember, you might receive educational benefits in prison but there is still a possible reduction. First off, this is only available to Vets who are convicted of non-felonies, and secondly, it’s only for covering tuition and supplies.

Families who may face this hardship can receive a portion of the funds while it’s being reduced or suspended unless they too are incarcerated. Spouses, children, or dependent parents may be able to receive benefits, but they need to apply.

Reaching out to the Homeless Outreach Coordinator at your local VA Regional Office, which is equipped to help justice-involved Veterans and their families.

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How Can a Veteran Lose Their Benefits?

There are several ways in which Veterans may lose or have a reduction in their benefits from the VA, surrounding a change in life’s circumstances, rule violations, or if there are changes to their disability status.

While this is not comprehensive, here are some of the more common ways Vets may lose or receive a lower amount of compensation for their benefits:

  • A change in one’s marital status or the number of dependents you have.
  • You’ve ran out of your educational benefits or they’ve expired.
  • If your income increases past certain thresholds as stipulated by your benefits.
  • You are incarcerated.
  • There’s a change to your VA disability rating due to a qualifying improvement in health.
  • You’ve committed fraud or other VA rule violations.

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