While termination is quite rare, it’s far more common that a disability rating from VA is reduced, thus affecting the total financial assistance provided to a veteran.
First and foremost, if you are incarcerated for a felony, your disability rating will be reduced to 10% of the original total benefit value on the 61st day of your imprisonment. If you were already at the 10% threshold, your rating will be reduced to 5%. When you are released, you will need to inform VA in order to have your rating restored to its normal level. Most other reductions will be related to a reexamination.
Reexaminations
If the VA has reason to believe that some or all of your disability could improve over time, you will need to undergo a reexamination. This can either take the form of a medical examination to determine if your condition has noticeably improved or a period of observation in the hospital. These reexaminations can be used to reduce your total rate of disability, meaning the monthly payments you receive from VA will also be reduced. There are many types of injuries and other cases where a reexamination is not required. Some such cases include:
Injuries that can’t improve, like a lost limb
Veterans over 55 years old
Disability ratings that are already at the lowest threshold
Veterans with multiple disabilities, leading to a rating that would be equally high if one disability improved