Can You Lose Your VA Disability Compensation?

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Can You Lose Your VA Disability Compensation?

Veterans who receive disability benefits from the U.S. Department of Veterans Affairs (VA) often rely on that compensation for financial stability and peace of mind. One common and understandably stressful question we hear from veterans in Houston and across Texas is: Can you lose your VA disability compensation?

Can you lose your VA disability compensation

The short answer is yes, but only under certain circumstances. VA disability benefits can be reduced or even terminated. Understanding how and why this happens is critical to protecting the benefits you earned through your service.

Here, we explain the most common scenarios, your rights as a veteran, and what steps you can take if your benefits are threatened.

Understanding VA Disability Compensation

VA disability compensation is a tax-free monthly payment awarded to veterans with service-connected disabilities. Disabilities are rated on a percentage scale from 0% to 100%, reflecting the severity and how the condition affects a veteran’s daily life and the ability to work.

Many veterans assume their rating is permanent, but that’s not the case. The VA has the authority to review cases periodically, which is where concerns often arise.

Can You Lose Your VA Disability Compensation?

The key question—can you lose your VA disability compensation—depends on several factors. The VA generally does not reduce benefits without cause. Changes can occur in the event of several legally recognized situations.

Reductions for VA benefits do not happen randomly or automatically. The VA must follow strict procedures and provide notice before making changes, allowing veterans to respond or appeal the decision.

Common Reasons The VA May Reduce Disability Benefits

There are several well-documented reasons for the reduction of VA disability, including:

  1. Medical Improvement
  2. If medical evidence shows that your service-connected condition has improved, the VA may propose a reduction. This decision often follows a Compensation & Pension (C&P) exam.
  3. Failure to Attend VA Exams
  4. Missing a scheduled C&P exam without good cause can lead to a reduction or suspension of benefits. These exams are evidence that confirms the current severity of your condition.
  5. Fraud or Misrepresentation
  6. Providing false information or exaggerating symptoms can result in termination of VA benefits and other potential legal consequences.
  7. Incarceration
  8. Veterans incarcerated for a felony for more than 60 days may see their compensation reduced to 10% or terminated completely. Dependents may still be eligible for apportioned benefits, but must apply for them.
  9. Return to Work (TDIU Cases)
  10. If you receive benefits based on Total Disability Individual Unemployability (TDIU) and return to substantially gainful employment, the VA may reassess your eligibility.
  11. Recoupment or other reimbursement withholding

The VA can also recover duplicate or overpayments, such as military separation pay, including voluntary or involuntary separation pay, if a veteran is later awarded disability payments. Veterans are not allowed to receive duplicate payments. The VA can also reduce or withhold monies if you owe a debt to the VA.

Important Protections for Veterans

The VA cannot simply cut your disability benefits overnight. Federal regulations require the VA to:

  • Send a proposed reduction notice
  • Allow 60 days for you to submit evidence
  • Offer the right to request a personal hearing

Additionally, long-term ratings receive extra protection. For example:

  • Ratings in place for 5 years or more require stronger evidence to reduce.
  • Ratings in place for 20 years or more are protected from reduction, except in cases of fraud.

Once the VA notifies you that it is considering a reduction in your benefits, you must act quickly.

What to Do If Your Benefits Are at Risk

If you receive a VA letter proposing a reduction, do not ignore it. This is the most critical time to act. You may need to submit updated medical records, obtain an independent medical opinion, or challenge the findings of a VA exam.

Working with an experienced disability law firm—especially one familiar with VA disability claims and appeals—can significantly improve your chances of keeping your benefits.

How a Houston VA Disability Lawyer Can Help

For veterans in Houston, TX, navigating VA regulations can feel overwhelming. A qualified VA disability attorney can help you respond to reduction notices, gather compelling evidence, and file appeals when necessary. Legal guidance is important when complex medical or procedural issues are involved.

The Herren Law Firm Can Help With VA Benefits

So, can you lose your VA disability compensation? Yes, but only under specific conditions, and you have rights and protections every step of the way. Understanding the reasons why the VA would reduce a veteran’s disability empowers you to take action early and safeguard the benefits you earned through your service.

If your VA disability benefits are being questioned or reduced, seeking legal advice promptly from a veterans disability lawyer can make all the difference. William Herren is an attorney who helps veterans with their disability claims. Mr. Herren has helped more than 6,000 Houstonians get the benefits they deserve, including veterans.

Call The Herren Law Firm today at 713-682-8194 (or use our online contact form) to schedule your free consultation. There’s no obligation, and we’ll take your case on a contingency fee basis, with no up-front charges. You don’t owe a fee until we win your case.

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