MEB Rating vs VA Rating: Why They Can Be Different and What It Means

One of the most confusing aspects of medical separation is that the military and the VA use different criteria to rate disability — and they can come to different conclusions on the same condition.

Understanding why this happens, and what each rating actually means for your benefits, is essential before you sign anything during your PEB process.

Two Systems, Two Purposes

The Military (DoD) Rating exists to answer one question: Is this condition severe enough to prevent this service member from performing their military duties? The military rates conditions using the VA Schedule for Rating Disabilities (VASRD) — the same rating schedule the VA uses — but applies it through the lens of military fitness.

The VA Rating exists to answer a different question: How much has this condition reduced this veteran's ability to earn a living? The VA rates conditions using the same VASRD but evaluates them from a civilian employment perspective.

Same rating schedule. Different questions. Different results are possible and common.

When Ratings Diverge

A condition might be rated at 20% by the DoD but 50% by the VA. This happens when:

• The military focuses only on the condition that makes you unfit for duty; the VA considers all service-connected conditions
• The VA rates for average civilian impact; the military rates for military job impact
• The VA may consider secondary conditions and combined effects that the military MEB didn't evaluate
• VA examiners and military examiners may assess symptom severity differently

How IDES Handles the Divergence

Under the Integrated Disability Evaluation System (IDES), both ratings are developed during the same process. When they differ, the PEB uses the higher of the two ratings for determining your disposition.

If the DoD proposes 20% and the VA proposes 40%:

• The PEB must acknowledge the VA's proposed rating
• The PEB uses the higher rating (40%) for the fitness/disposition determination
• This is the rating that determines whether you qualify for disability retirement (30%+)

This protection was added specifically to prevent service members from being separated with severance pay when their conditions warranted retirement.

What Severance Pay vs. Disability Retirement Means Financially

This distinction has massive long-term financial impact:

Separation with Disability Severance Pay (under 30% or under 20 years):

• One-time lump sum payment (2 × base pay × years of service, up to certain limits)
• You return this money if later awarded VA compensation (offset rules)
• No monthly retirement check

Disability Retirement (30%+ rating or 20+ years):

• Monthly tax-free retirement pay for life
• Access to military retiree health care (TRICARE)
• For ratings under 50%: some offset with VA compensation applies (CRDP/CRSC rules)
• For 50%+ or TDRL/PDRL status: more favorable compensation rules

On a 20-year career with a moderate disability rating, disability retirement is worth hundreds of thousands of dollars more than severance pay.

Disputing a Low Rating

If the VA's proposed rating in IDES is lower than you believe it should be:

1. Review the Disability Benefits Questionnaire (DBQ) the examiner completed — this is the form your rating was based on
2. Submit additional evidence before the PEB finalizes findings — private medical evaluations, buddy statements, functional impact statements
3. Work with your JAG attorney on a formal rebuttal
4. Request a formal PEB hearing if the informal PEB findings are unfavorable

After separation, you can file a VA claim to increase a rating that was low, but this is a separate process and takes time.

The Single Unfitting Condition Problem

The DoD typically rates only the conditions it determines make you "unfit for duty" — often just one or two. The VA, through IDES, should rate all conditions you've claimed.

However, service members sometimes discover after separation that conditions they mentioned during the MEB were not forwarded to the VA for rating. If you believe a condition was documented but not rated, raise this with your PEBLO and JAG before your separation date.

Use MTT's MEB/PEB Tracker to document all conditions you've mentioned during the process so nothing falls through the cracks.

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Sources: DoDI 1332.18, VA Schedule for Rating Disabilities (38 CFR Part 4), health.mil Disability Evaluation System, Veterans Benefits Administration