Reevaluating the Rating Schedule: Examining VA’s Efforts to Modernize Disability Benefits

House Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs

2026-01-14

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Source: Congress.gov

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Oh my goodness, good afternoon.  Where time, I had time to fly, I don't even know.  Anyway, thank you for coming today.  Everyone in the audience, thank you for attending the committee hearing today in Disability Assistance Memorial Affairs.   Chair may declare recess at any time.  The subcommittee hearing will come to order.  Good afternoon again.  Thank you to our witnesses for being here today.  This afternoon, the subcommittee is examining the VA schedule for rating disabilities, otherwise known as the Varsity and the Department of Efforts Modernization, modernizing this system.   The varsity is the scale that determines how the veteran's service-connected conditions are evaluated, which then determine a veteran's eligibility for benefits, overall disability ratings, and ultimately the amount of tax-free money they receive each month.  While the varsity is incredibly overcomplicated, it is important to step back and know that the schedule affects real lives.  It allows VA to deliver compensation to veterans for their service-connected disabilities and ensure all veterans are evaluated at the same standard.   Congress created the varsity with a clear purpose to compensate veterans for the average impairment caused by their service-connected disabilities to their earnings capacity.  The rating schedule was created in 1945.  While parts of it have been updated over time, the overall framework remains   In 2007, VA Advisory Committee on Disability Compensation concluded that the rating schedule was outdated and recommended a full review of all 15 body systems.  VA formally began the effort in 2009 with a plan to complete this work by 2016.  10 years later, VA has only completed a review of 11 body systems out of the total 15.  According to the testimony provided in a Senate hearing last year, VA has now extended its timeline to 2026.   Again, this is more than 10 years beyond the original goal.  VA has made progress, but it is inconsistent thus far in my personal opinion.
The veterans of today deserve assistance that evaluates their disabilities based on the medical evidence of today's   medical practices.  The respiratory endocrine, musculoskeletal, and digestive systems have been updated in the past 10 years, but several important systems remain unfinished.  The neurological, cardiovascular, and hematologic systems are still in various stages of review, despite many of these conditions being common.   and often complex.  Mental health remains the most concerning VA proposed updates to the mental health rating criteria in 2022, but those changes have not been finalized.  As a result, one of the most heavily relied upon portions of the rating schedule continues to operate under criteria that many believe no longer reflects modern clinical understanding or the full scope of functional impairment that veterans experience.   Just as important, VA has not undertaken a comprehensive review of the economic component of the rating schedule.  That component is supposed to connect medical findings to loss of earning capacity.   Without updating this, the system risks drifting further away from its statutory purpose of benefiting veterans.  This uneven modernization has real consequences on the veterans community and their families, and when rating criteria are outdated, inconsistent examiners and raters are left actually just to fill the gaps.  That increases the likelihood that similar claims are handled differently.   Recent GAO reporting has highlighted inconsistent outcomes for similar conditions, outdated medical and occupational criteria, and quality review processes that are not strong enough to catch errors before they affect veterans.   VA's current quality assurance approach relies on limited samplings that often fail to identify broader area trends, and too often problems are discovered only after decisions have already been issued, leading to rework, appeals, and additional delays.  Systems matter, standards matter,   And today, oversight obviously matters.  And I'll close with this for veterans.  The disability rating process is not an abstract policy exercise.  It is often the moment when they sit across from the system and ask for help, sometimes years after they left the military.

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