When the VA Can Lower or Take Away Your Disability Benefits

Even if you've already been awarded compensation for a service-connected disability, the VA can, in some instances, reduce or terminate your benefits. Whether or not your VA disability will be taken away or your benefits cut depends on a number of factors, such as how long you've had the same disability rating and how much your disabling medical condition has improved.

Can the VA Reduce My Disability Benefits?

The most common scenario for veterans to have their disability benefits reduced is when the VA thinks that their condition will improve enough within five years to warrant a lower disability rating. Because VA disability payments are determined primarily by your percentage rating, you may find that your benefits are reduced in proportion to your medical improvement.

The VA will send you notice of a medical reexamination before deciding to lower your rating. Make certain to attend your scheduled reexamination—if you don't show up, the VA could reduce or take away your benefits by default. But the VA can't use the reexamination as the sole basis for a reduction in benefits. The agency must look at your entire medical history before proposing to lower your disability rating.

If you've had the same disability rating for at least five years, the VA can't reduce your rating unless it can show that you've had a sustained (and likely permanent) improvement in your condition. And if your disability has been continuously rated at or above a certain percentage for 20 or more years, the VA can't reduce your rating unless it finds the rating was based on fraud. This is a very high standard, so it's unlikely that your rating would be reduced after so long.

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

Some veterans have conditions that are rated 100% and aren't ever expected to improve, such as the complete amputation of a limb. It is possible, but very difficult, for the VA to reduce disability ratings in these cases. You'll need to demonstrate a "material improvement" in your condition before the VA can lower your benefits—a slight improvement isn't enough.

Even if your medical condition has materially improved, the VA won't reduce your rating if you're unable to work due to your service-connected disability. In those cases, you're entitled to a 100% rating based on individual unemployability.

Does VA Disability Last For Life or Will It Go Away?

Compensation for service-connected disabilities can sometimes be reduced (as described above), but the VA rarely stops disability payments entirely. And if you've been receiving compensation for ten years or longer, the VA can't take away your disability benefits unless you committed fraud or the VA made a "clear and unmistakable error," such as paying you benefits when you were dishonorably discharged (and therefore not eligible for disability compensation).

Even if you haven't been getting payments for ten years, it's quite rare to lose benefits completely. Veterans can have their compensation reduced or their pension terminated if they're incarcerated, but the VA will reinstate or resume payments upon release. In any event, the VA can't stop your benefits unless you first receive a notice informing you about your right to have a hearing. You also have the right to appeal any decision to end your benefits.

Does a Government Shutdown Affect VA Disability Pay?

No, VA disability payments aren't affected by a government shutdown. The VA has a contingency plan that makes sure veterans' benefits continue to be processed and paid through a shutdown, including disability compensation, pension, and housing benefits. VA Medical Centers, Outpatient Clinics, and Vet Centers will remain open, and the Board of Veterans Appeals will continue to operate. However, VA benefits regional offices will be closed, and career counseling or transition assistance won't be available for the duration of the shutdown.

Can You Cancel Your VA Health Care Benefit At Any Time?

Even veterans with a 0% disability rating are eligible for VA health care, although they can't receive disability compensation benefits. However, you aren't required to use VA health care, and some vets might choose to be covered through a spouse's insurance instead.

You can ask the VA to cancel your health care by sending a disenrollment request (also called a "cancel/decline letter") to the following address:

Health Eligibility Center
Enrollment Eligibility Division
PO Box 5207
Janesville, WI 53547-5207

Currently, you can't cancel your VA health care benefit online, but you can bring the signed and dated letter requesting cancellation to a VA Medical Center. Keep in mind that canceling your VA health care benefit may impact your requirements under the Affordable Care Act (ACA) if you aren't covered by other insurance.

VA Disability Cuts: Will Compensation Rates Go Down?

Not without a major legislative overhaul. The VA is required by law to match disability compensation rates using the same annual cost-of-living adjustment (COLA) made to Social Security benefits. Each year, the amount of benefits you'll receive increases by a certain percentage to account for factors such as inflation. In 2024, the COLA adjustment was 3.2%. While the 2025 rate has yet to be announced, it's projected to be around 2.5%.

Do I Need a Disability Lawyer?

You're not required to have an attorney at any part of the VA disability process, but it's typically a smart move—especially if you need to appeal a reduction or termination of benefits. Most VA lawyers work on contingency, meaning they don't get paid unless you win your case, and there are many services offering low- or no-cost services for veterans. You can find out more in our article on hiring a VA lawyer.