Can You Lose VA Benefits?

Veterans who are seeking an increased rating or service connection for a new disability often ask whether reopening their file can cause the VA to take away their existing rating. The short answer is yes, you can lose your VA disability benefits, but the VA must follow strict legal and procedural guidelines in doing so. Hill & Ponton explains the rules and protections in place that govern when and how a VA disability rating can be taken away, and what you can do about it.

When Can VA Take Away Your Disability Rating? 

If the VA determines that a veteran’s service-connected disability has improved, it can reduce the current disability rating. This can happen even if the veteran has not filed any new claims. A VA disability rating reduction may be proposed at any time based on a VA examination or medical evidence showing material improvement in the condition. However, there are rules about when and how the VA can accomplish a rating reduction. 

The VA must review all of the evidence and not rely on the strength of a single Compensation and Pension (C&P) exam which is not thorough and supported by the evidence. In addition, the VA must notify the veteran of its intent to reduce the rating and give the veteran time to respond. At that point, it is important to take an active role in providing the VA with any evidence that shows the severity of the disability has not improved. 

Other Reasons for Losing VA Benefits 

Not Cooperating with the VA 

Veterans are obligated to cooperate with VA requests during the claims and review process. This includes attending scheduled  C&P exams, responding to VA correspondence, and submitting requested documentation such as financial records, dependent verification, or medical records. If a veteran fails to attend a required exam without good cause, the VA can reduce existing benefits based on “insufficient evidence.” Failure to respond to VA letters or requests within set deadlines may also lead to denial, discontinuation of benefits, or delay in processing. Always notify the VA immediately if you cannot attend a scheduled appointment or need more time to submit required evidence.  

Fraud or Misrepresentation 

Fraudulent claims are treated with the highest severity. If the VA determines that a veteran deliberately submitted false documentation, omitted key information, or misrepresented facts related to their claim, it will retroactively terminate benefits back to the original effective date. 

This not only results in the loss of current benefits, but also the creation of a significant overpayment debt. Additionally, fraud can result in criminal charges, disqualification from future VA benefits, and other legal consequences. Veterans found guilty of fraud would have to repay the compensation they received and may face prosecution under federal law.  

VA Overpayments and Recoupment 

VA overpayments can sometimes happen due to  unreported income, changes in marital or dependent status, or a retroactive reduction in disability percentage. When an overpayment is identified, the VA will notify the veteran by mail, outlining the amount owed and the reason for the debt. The VA can withhold future monthly payments (in full or in part) until the overpayment is recovered. These adjustments can feel like a temporary loss of benefits. 

Veterans have the right to dispute the debt, request a waiver (in cases of financial hardship or if the overpayment was not the veteran’s fault), or propose a repayment plan. However, ignoring a debt notice can result in collection actions, including referral to the U.S. Treasury or credit reporting agencies.  

Veterans should also be aware that sometimes it is the VA that makes a mistake. If an overpayment is created by an administrative error by the VA, then the veteran should not have to repay the VA. 

Incarceration for a Felony  

When a veteran is incarcerated for more than 60 days due to conviction of a felony, ratings of 20% or higher are typically reduced to 10%, while ratings of 10% remain unaffected. This is a temporary loss, but it doesn’t end automatically after time is served – the veteran must notify the VA of their release and request reinstatement of full compensation. Dependent family members may still qualify to receive a portion of the withheld benefits through an apportionment request filed during the veteran’s incarceration. 

VA may also suspend or deny benefits if a veteran is considered a “fugitive felon,” i.e., if a veteran is subject to an active felony warrant for flight to avoid prosecution or custody or violation of probation/parole conditions related to a felony offense. 

The VA Process for Reducing or Terminating Benefits

1. Notice of Proposed Reduction: Before the VA can reduce a disability rating, it must issue a written notice with detailed reasons for the proposed action. 
2. 60 Day Response Window: The veteran is allowed 60 days to submit evidence showing why the rating should not be reduced, such as new medical records or statements; it may be a good idea to submit an independent medical opinion, especially if the change is based on an unfavorable Compensation & Pension exam. 
3. Final Rating Decision : After the 60 day period, a final rating decision may be issued. The lower rating will become effective on the last day of the month following  60-days  after the notice date. This means it generally takes at least 120 days to lose the VA disability rating, from the date of the initial notice. 

Optional: Veterans also have the right to request a hearing within 30 days of receiving the proposed reduction notice. This request delays the implementation of any rating change until the hearing has taken place and a decision is issued. 

When Is Your VA Disability Safe? 

There are several levels of protection against losing disability benefits, based on how long a rating has been in effect, including the 5-year rule, the 10-year rule and the 20-year rule. 

1. 5-Year Rule (Stabilized Ratings) 

Once a veteran’s disability rating has been in effect for at least five years, the VA considers that disability “stabilized.” To take it away, the VA must show that the veteran’s condition has undergone a sustained improvement, not a temporary one. For instance, certain disabilities become symptom-free after extended periods of bed rest, but that does not mean the disabilities have improved for VA rating purposes.  

The VA may not reduce a stabilized rating where the improvement is only due to the veteran’s having been on bed rest or if it is otherwise clear that the veteran’s improvement could not be maintained if the veteran returned to the ordinary conditions of life.  

The VA should consider all medical evidence pertaining to the veteran’s disability and may not reduce the rating based on a single medical exam that indicates improvement where the remainder of the medical evidence indicates that the veteran’s disability is still at the same level. If there is any doubt about whether a stabilized rating has improved, the VA is not supposed to take away that rating. 

2. 10-Year Rule (Service Connection Protection) 

After ten years, service connection of a disability gains an additional protection. Once a veteran’s disability has been service connected for ten years, the VA may not sever that service connection unless the original grant of service connection was based on fraud by the veteran or a clear and unmistakable error.  

The actual disability rating may still be reduced, according to the requirements for a stabilized rating, but the VA may not sever service-connection for the disability, meaning it can still be used to obtain access to health care or establish service connection for secondary conditions. 

3. 20-Year Rule (Rating Level Protection) 

In the case of a veteran whose disability has retained a certain level of disability rating for at least twenty years, the VA may not reduce that rating for anything less than showing that such rating was based on fraud by the veteran. This rule applies even if there is a change in the nature of the disability or the disability improves. 

Can the VA Take Away 100% Permanent and Total Disability? 

Yes, but only under specific and limited circumstances. When a veteran has been granted a total disability rating based on the severity of his condition (not including a 100% rating based on unemployability), that rating should not be reduced without: 

1. Conducting an examination that clearly shows material improvement, and
2. Demonstrating that the improvement happened while the veteran was working or actively seeking work or otherwise participating in the ordinary conditions of life such that the veteran could work and still maintain this improvement.

If the improvement only occurred because the veteran was resting or inactive, the VA cannot legally take away the disability rating. This is true regardless of whether the rating was in effect for more or less than five years.

The VA must compare the evidence it relied on in the most recent rating decision that continued the 100% rating with the evidence it wants to use to discontinue it. In such a case, it’s a good idea to get an independent medical evaluation and submit any evidence that shows there has been no material improvement in the veteran’s physical or mental condition. If the VA does not follow the correct procedures, the remedy is reinstatement of the rating back to the date on which it was unlawfully discontinued.

It is important to note that VA generally does not schedule examinations for veterans who have been awarded permanent and total disability ratings on its own initiative. A reduction of permanent and total disability ratings is often the result of VA reopening the veteran’s file due to new claims being submitted by the veteran.

TDIU Conditions

Different rules apply when the veteran’s 100% rating is an unemployability (IU or TDIU) rating. If there is clear evidence that the veteran has had a marked improvement and can work or is working, that veteran can lose VA disability. Such a reduction might be initiated by VA receiving records from the Social Security Administration which indicate that the veteran’s earned income is above the poverty level.

Because of this, a veteran who has 100% disability based on unemployability should pay close attention to the reporting requirements for this type of rating. Submit every year the employment certification forms required by the VA, indicating that you have not worked in the past year to avoid losing your disability benefits.

Can You Ever Lose Service Connection?

The VA can only completely sever service connection under very limited circumstances:

• When the original grant of service connection was based on fraud, or 
• When it is later found that the veteran was ineligible for benefits due to service requirements (e.g., length of service, character of discharge). 

Otherwise, after 10 years of continuous service connection, the VA cannot sever a disability, even if symptoms have improved. You could lose the rating, but the service connection stays in place.

Severance of service connection due to fraud is for the most part self-explanatory. If the VA alleges fraud, the veteran still has due process protections, including the right to submit evidence, the right to a hearing, and the right to representation by counsel.

The other reason for the severance of service connection, a clear and unmistakable error (CUE) in the decision that granted service connection, is more complicated. In such cases, the burden of proof is on the VA to show that in light of all the accumulated evidence, the diagnosis on which service connection was based is clearly erroneous. This requires the VA to show more than that there is just a difference of opinion.

For instance, if one C&P examiner diagnoses a veteran with depression and grants service connection based on that opinion, the fact that a later examiner instead diagnoses the veteran with a personality disorder is not enough in and of itself to sever service connection. The VA is required to look at the evidence as a whole to determine whether the original grant of service connection was wrong.

Has the VA Wrongly Severed Your Benefits?

VA attorneys Matthew Hill and Carol Ponton explain severance and what you can do if your VA disability is taken away:

Hill & Ponton’s VA-accredited lawyers specialize in helping wrongly denied veterans win their rightful benefits and owed backpay. Get a free evaluation today.

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How to Avoid Losing VA Benefits

There are several proactive steps a veteran can take to help prevent the VA from taking away VA disability benefits:

• Attend all scheduled VA medical exams. Missing a Compensation & Pension exam without good cause is one of the most common ways a veteran can lose benefits. If you cannot attend, notify the VA immediately to reschedule. 
• Stay engaged with ongoing treatment. Gaps in treatment can support a negative C&P exam and lead the VA to believe your condition has improved. Regular medical appointments help maintain evidence of continued symptoms. 
• Respond promptly to VA correspondence. If you receive a Notice of Proposed Reduction, submit medical evidence within the 60-day window and request a hearing within 30 days if needed. 
• Submit required forms on time. Veterans receiving TDIU must submit annual income certifications to avoid automatic termination. 
• Understand your protections. Be aware of the 5-, 10-, and 20-year rules and assert them if the VA proposes a reduction.  
• Consider an independent medical opinion. If the VA’s exam seems flawed or rushed, a private medical opinion can provide stronger evidence in your favor. 
• Seek representation. Veterans Service Organizations (VSOs), claims agents, or VA-accredited attorneys (such as Hill & Ponton) can help challenge wrongful reductions or prepare a strong defense against proposed actions. 

Frequently Asked Questions