Editor’s Note: After veterans groups strongly criticized the 2018 budget proposal, Secretary of Veterans Affairs David Shulkin wrote to several groups in October 2017 to indicate the VA did not support a termination of total disability based on independent unemployability, according to Stars & Stripes.
Citing “hard decisions” that have to be made amid growing priorities, Department of Veterans Affairs Secretary David Shulkin is considering cutting funding for certain veterans receiving Independent Unemployability payments (IU benefits).
This is the second time Shulkin has contemplated altering the benefit. In June, he was discussing the possibility of eliminating the IU benefits program entirely, and shifting the funds to the VA Choice Program, which allows veterans to utilize private health care providers with their VA medical benefits.
Despite a significant walk back of his earlier proposal this summer, Shulkin’s newest plan has many veterans and supporting organizations concerned.
Who is currently utilizing the IU program?
More than 200,000 disabled veterans receive IU benefits, which are designed to provide income to those whose disabilities prevent them from maintaining consistent work. Seasonal employment and side jobs are not considered gainful employment by the VA.
To be eligible for IU benefits, veterans must:
- Have one service-connected disability rated at 60 percent
OR
- Have two ore more service-connected disabilities with one rated at 40 percent or more and a combined total of 70 percent or more
- Be unable to hold a job due to their service-connected disabilities
For veterans who meet the requirements, they receive monthly disability payments at 100 percent rating, despite injuries are actually rated at.
Who would be affected by IU benefits cuts?
Shulkin’s proposal would terminate the benefit for veterans who become eligible to receive Social Security, a move that would save the VA and estimated $3.2 million next year. The plan would exempt veterans who are unable to collect Social Security.
Advocacy groups claim the cuts would adversely affect a large number of disabled veterans, and put them at risk for poverty. Vietnam Veterans of America National President John Rowan said taking IU benefits away would be ripping away something veterans earned.
It is unfair and simply wrong to characterize IU and Social Security as duplicative,” Rowan said in a statement. “Veterans have earned both benefits, IU by virtue of their service … and Social Security through working and contributing into the system.”
For disabled veterans utilizing the IU program whose spouses receive health benefits through it as well, the loss of a monthly average $1,600, on top of the new added cost of private healthcare could be devastating.
Where can veterans turn for financial assistance?
Aside from traditional avenues not specific to veterans, such as welfare programs, there are a few charities that offer financial assistance grants to former military members. While not a monthly solution if IU benefits are reduced, the grants provide some breathing room while veterans find a permanent source of income, or adjust their living habits to their new reality.
The Veterans of Foreign Wars (VFW) offers an Unmet Needs Grant to veterans to help with the cost of living due to a financial hardship. The grant is paid directly to creditors, and can be used toward paying any of the following:
- Household expenses
- Vehicle expenses
- Utilities
- Food and clothing
- Children’s needs
- Patient portions of medical expenses
Many other charities focus on disabled veterans from the more recent conflicts in Iraq and Afghanistan, which would exclude veterans that would be affected by a rollback of IU benefits due to becoming eligible for Social Security at the full retirement age of 66.