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Can You Lose VA Disability Benefits?

VA disability benefits provide veterans with critical financial and medical support. However, they are not guaranteed for life. Many veterans ask, “Can you lose VA disability benefits?” The answer isn’t a simple yes or no. Understanding when and why benefits can be reduced is necessary to protect your hard-earned compensation.
Content Reviewed by: Matt Coveney
Last Modified Date: April 15, 2025
Key Takeaways
  • VA disability benefits can be reduced or revoked if a veteran’s health improves, if fraud is discovered, or due to changes like incarceration or returning to active duty.
  • Some VA disability ratings, like 100% Permanent and Total, are protected from reduction.
  • Veterans can challenge a reduction by requesting a reexamination or filing an appeal with supporting evidence.

While some VA disability ratings are protected from reduction, others may be subject to periodic review. Knowing what triggers a VA disability reduction and how to challenge an unfair decision can make all the difference. At Veterans Guide, we help veterans understand their rights and the steps they can take to protect their benefits.

Can the VA Take Away Your Disability Benefits?

The fear of losing benefits troubles many veterans. “Can I lose disability benefits?” isn’t just a question but a worry about stability after service. No one wants to lose their VA benefits, especially if you are dealing with major financial and medical issues.

The Department of Veterans Affairs can reduce or revoke benefits under specific conditions such as health improvements, fraud, or life changes. However, many ratings are protected from VA disability termination.

The VA cannot withdraw benefits without cause. It weighs evidence, including medical exams and legal status, before acting. Knowing when and why this happens can help you protect what’s yours.

Reasons You Could Lose or See a Reduction in VA Disability Benefits

Veterans may experience a VA disability termination or reduction for several reasons, including the following:

  • Medical reevaluations and improved health: If a veteran’s condition improves, the VA may lower or revoke their benefits.
  • Mistaken or fraudulent claims: If the VA discovers that a claim was based on incorrect or misleading information, benefits may be revoked.
  • Returning to active duty or working in a specific capacity: Some jobs, particularly those involving federal employment or re-enlistment, can impact benefits.
  • Incarceration and VA benefits: Can you lose your VA disability benefits if you go to jail? The answer depends on the length of incarceration and the type of disability compensation received.

Each of these situations has specific rules and implications. Knowing these reasons can help you take steps to safeguard your benefits.

Medical Reevaluations and Improved Health

The VA conducts periodic reviews of service-connected disabilities to assess whether a veteran’s condition has improved. This process, known as a VA disability reexamination, may lead to a VA disability reduction if the veteran no longer meets the criteria for their current rating.

For instance, veterans with PTSD or musculoskeletal injuries may undergo reevaluations if the VA believes their condition has improved. But can the VA reduce your disability rating for PTSD? If medical evidence suggests reduced symptoms, the VA may lower the rating. However, veterans can challenge reductions with new medical evidence.

Mistaken or Fraudulent Claims

If the VA discovers it awarded disability benefits based on incorrect or fraudulent information, it may revoke or reduce the rating. This can occur when:

  • The veteran exaggerated or falsely claimed a disability.
  • The VA discovers new evidence contradicting a previous claim.
  • The VA assigned the rating due to an administrative mistake.

One instance that could jeopardize your status is a fraudulent claim for a drug-induced condition. However, can you lose VA benefits for drugs? Not directly. Substance use itself has no bearing on your underlying service-connected condition. You will have no issue as long as your service-connected disabling condition is legitimate. Still, the VA takes fraud seriously, meaning veterans should support their claims with accurate and well-documented medical evidence to avoid potential penalties.

Returning to Active Duty or Working in a Certain Capacity

A common concern is, “Can you lose your VA disability benefits if you work?” Returning to active duty or engaging in substantial employment may prompt a VA review, potentially affecting eligibility. Re-enlistment could suggest a level of fitness incompatible with certain disability ratings.

Significant income from work may also raise questions about disability severity. The VA disability 5-Year Rule provides some stability after five years, but new employment could still initiate scrutiny.

Incarceration and VA Benefits

Under VA regulations, felony convictions resulting in incarceration exceeding 60 days reduce benefits, often dropping a 100 percent rating to 10 percent during confinement. Once a Veteran is released from prison, compensation payments may be reinstated based on the severity of the service-connected condition at that time.

Misdemeanor sentences typically do not impact compensation.

Want to Increase Your VA Rating?

What Are Protected VA Ratings?

Not all VA disability ratings are subject to reduction. Certain ratings, known as protected ratings, offer long-term security for veterans. These include 100 percent Permanent and Total ratings and continuous ratings under the 20-Year Rule, 10-Year Rule, and Stabilized Ratings.

If you are uncertain about your rating, use our 2025 VA disability calculator to estimate your current rating.

100% Permanent and Total Ratings

A 100 percent Permanent and Total rating, or P&T, offers the highest level of protection. Veterans with this rating are considered permanently disabled and are not required to undergo medical reevaluations.

Does VA disability stop at age 65? No. P&T ratings remain intact regardless of age, offering lifelong support. This rating is rare. You need meticulous documentation to receive a 100 percent P&T rating.

Continuous Ratings – the 20-Year Rule, 10-Year Rule, and Stabilized Ratings

Continuous ratings offer additional protections for veterans. Under the 20-Year Rule, if a veteran has held a rating for 20 years or more, the VA cannot reduce it below the lowest rating held during that period. Similarly, the 10-Year Rule and Stabilized Ratings provide safeguards against reductions for long-term disabilities. These rules allow veterans with chronic conditions to maintain their benefits.

How to Challenge a VA Disability Reduction

Facing a VA disability reduction? Options you can take to push back include requesting a reexamination or filing an appeal. You should act quickly to protect your right to receive VA disability benefits.

Requesting a Reexamination

A VA disability reexamination allows veterans to present new medical evidence, such as recent MRI results, to counter a proposed reduction. This must be filed within 30 days of notification, stressing the need for a speedy response.

Our legal team can help you gather the necessary documentation and build a strong case to support your claim. This step is important if you believe your condition has not improved or has worsened. It mitigates the risk of losing benefits.

Filing an Appeal

You can file a VA benefits appeal if a reexamination does not resolve the issue. The appeals process can be tricky, but with the right legal guidance, you can successfully challenge a VA disability reduction. Our success stories prove it. We offer professional assistance throughout the appeals process, giving you the best chance of retaining your benefits.

For instance, if the VA reduces your rating due to a medical reevaluation, you can present new evidence, such as updated medical records or expert opinions, to support your case. The appeals process includes several stages, from filing a Notice of Disagreement to potentially presenting your case before the Board of Veterans’ Appeals. Each step requires careful preparation and a thorough understanding of VA regulations.

How Veterans Guide Can Help

If you’re worried about losing your VA disability benefits or facing a rating reduction, Veterans Guide is here to support you. Our team of lawyers and advocates can guide you through the process to protect your benefits, from advising you about protected ratings to filing an appeal. We’ll assess your circumstances, gather evidence, file paperwork, and present your case to fight for the benefits you’ve earned.

Don’t wait. Take the first step today by calling (888) 982-1009 or contacting us through our contact form. Your benefits are too important to leave to chance.

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Matt is a VA-accredited attorney who co-founded NAVDA in 2023. Matt has helped veterans with the VA disability appeals process since he became accredited in 2021.