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VA Disability Compensation: Disability Ratings May Not Reflect Veterans' Economic Losses

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Report Type Reports and Testimonies
Report Date Jan. 7, 1997
Report No. HEHS-97-9
Subject
Summary:

The disability ratings used by the Department of Veterans Affairs (VA) still rely on judgments made by doctors and lawyers in 1945 about the effect of service-connected conditions on an average individual's ability to do jobs requiring manual or physical labor. During fiscal year 1995, veterans' monthly benefit ranged from $89 to about $1,800, depending on the degree of disability. Dramatic changes have occurred in the labor market and in society since 1945, and some of the ratings in the VA schedule likely do not reflect the economic loss experienced by veterans today. Basing disability ratings at least in part on actual earnings loss rather than solely on judgments of loss in functional capacity would help to ensure that veterans are compensated according to their economic losses and that compensation money is distributed equitably.

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