VA Disability Lawyer Brendan Garcia: VA’s New Disability Compensation Rates May Be Inadequate

The Veterans Affairs (VA) disability compensation rates for 2022 became effective December 1, 2021. Veterans received an increase in their benefit checks, beginning December 31st due to the New Year’s holiday. Veterans nationwide are looking forward to the new year with a few more dollars to spend on necessities.

The increase is 5.9% for 2022, the highest in nearly 40 years. At first glance, this is good news for veterans dependent on their disability checks to survive.

Some veterans and those who care for them may be cheering and feeling relieved about the large increase in disability rates. There may be a belief that veterans are finally being taken care of, that this significant increase represents a renewed commitment to caring for veterans and recognition for their sacrifices. The reality is that the real cost of living has also increased significantly. There is no bonus in this rate increase.

Brendan Garcia, a U.S. Marine Corps veteran and VA accredited disability lawyer at VetLaw, discusses how this seemingly large increase in disability compensation falls short of the needs of our nation’s veterans.

How Does This Work?

The cost-of-living increase for VA disability is tied to the Social Security Cost of Living Adjustment (COLA). That number is determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is calculated based on the annual percentage increase between comparative third-quarter annual reports from the Bureau of Labor Statistics (BLS) data on inflation. The increases for both VA disability and Social Security programs are effective in January and are fixed for the next 12 months.

The Impact on VA Disability Payments in 2022

Service-connected disabled veterans receive disability payments based on their rating, which ranges from 10% to 100%.

Veterans rated at 10% Service-Connected Disability (SCD) will receive $152.64 per month. Veterans rated 20% will receive $301.74. Dependents are not factored into payments at these rating levels.

Single veterans without dependents who are rated from 30% to 100% will receive between $467.39 and $3332.06 each month in 2022.

The rates for those rated 30% and over vary based on family size. The family members who are counted in the calculation of family size can include spouses, children, and dependent parents. The rates at each level will increase based on each additional family member. The amount received for additional family members is based on the familial relationship and the disability rating of the veteran.

Falling Behind Before the Increase Begins

A troubling increase in the cost of living measured by the CPI-W for October 2021 was 6.2%, just one month after the 2022 VA disability rates were determined, and followed by the November report in which the COLA rose 6.8%. Before our service-connected veterans collect on their first cost of living raise in 2022, the cost of living has risen almost a whole percentage. The impact of this rate of inflation is disheartening, to say the least.

The increase in 2019 was 1.3% and in 2020 the increase was 1.6%. These numbers illustrate the usual year-to-year change in the Cost of Living Adjustment (COLA). The changes are not usually drastically different. Inflation and the COLA are typically between 1% and 2%. When comparing the most recent increase, it’s startling. In one year, the cost of living—for all Americans—increased by over 5%.

How Are Veterans Impacted by Disability Rates and Increasing Inflation?

The Bureau of Labor Statistics reports that there are over 18.5 million veterans in the United States. There are more than 4.7 million veterans with a service-connected disability—that is 26% of all veterans with a service-connected disability. Approximately 44% of service-connected veterans have a rating of 60% or higher. There are approximately 27% of SCD veterans who have a rating under 30%.

Those veterans with a higher rating (over 60%) have a higher rate of unemployment than those veterans with lower ratings (under 30%). This has a significant impact on these veterans’ ability to make up for the loss in buying power of their VA disability check.

Our younger veterans are significantly impacted by the economics of VA disability compensation. More than 40% of our more recent Gulf War veterans report a service-connected disability, and more than half of those veterans have a rating of 60% or more.

The price of food and transportation is skyrocketing. Veterans must spend more on the things they need, exceeding their expected budget. Food has increased around 6.4% during the period measured for the COLA increase, but within that number meats, poultry, fish, and eggs rose over 12%, beef over 20%. Fuel has increased over 50%, adding to the cost of bringing all products to market and to consumers.

These economic times are hard on everyone. Those on fixed incomes are at a particular disadvantage. More inflation is expected over the next year. Our veterans must stretch their disability checks further than ever.

Time to Review Veteran Disability Eligibility

Many veterans have illnesses and injuries incurred in the line of duty. Some never applied for compensation for their health concerns. Some veterans applied and were denied, never following up.

The rules governing VA disability eligibility change frequently. Many health issues that were denied years ago have been reviewed and moved up to presumptive conditions. Other illnesses that were difficult to diagnose now have precedence. Those veterans who have been denied in the past should review their circumstances. Many veterans currently receiving benefits may be eligible for an increase in compensation.

A VA disability lawyer can assist you in securing the benefits that are owed to you. If you have applied for benefits and have received a denial on your claim, or if you have an appeal deadline looming on the horizon, you need the expertise of a skilled, compassionate attorney who will support you throughout the process.