The U.S. Court of Appeals for Veterans Claims (CAVC) issued several landmark decisions in 2025 that significantly impact how the VA evaluates disability claims. These rulings address critical issues, including medication effects on disability ratings, survivor benefit rights, and accrued benefits eligibility. Understanding these cases could be the key to protecting your benefits or winning your appeal.
In this article, we'll break down three important cases and explain what they mean for your VA disability claim.
Ingram v. Collins, 38 Vet. App. 130 (2025): VA Must Rate Your Disability Without Considering Medication Benefits
The Bottom Line
When diagnostic codes don't specifically mention medication, VA must rate your disability based on your baseline impairment—meaning how you would function without the beneficial effects of your medication.
What Happened in This Case
The veteran in Ingram suffered from a service-connected musculoskeletal condition that required ongoing pain medication. Medical examinations documented frequent flares, significant functional impairment, missed work, and continuous use of pain medications. However, the VA focused on how well the veteran functioned while taking medication, rather than considering his baseline impairment without it.
The medical records showed persistent symptoms and limitation of motion, even while the veteran was medicated. This evidence contradicted the VA's argument that medication fully ameliorated (improved) his disability.
The Court's Decision
The CAVC held that when diagnostic codes do not specifically mention medication use, the VA must rate disabilities based on the veteran's baseline impairment—disregarding any improvements due to medication. The Board of Veterans' Appeals had erred by failing to:
- Discount the beneficial effects of medication when evaluating the disability
- Properly analyze favorable evidence showing the veteran had documented limitations even while on medication
The case was remanded (sent back) for proper adjudication.
Why This Matters for Your Claim
This ruling is groundbreaking for veterans with chronic pain conditions, arthritis, back injuries, and other musculoskeletal disabilities who rely on medication to function. Many veterans have been unfairly given lower disability ratings because examiners only observed them while they were medicated.
Key Takeaway: If you take medication for a service-connected condition, the VA cannot simply evaluate how you function while medicated. They must consider what your symptoms and limitations would be without that medication. This could mean the difference between a 30% rating and a 60% rating—significantly affecting your monthly compensation.
Action Step:
If you believe your disability rating doesn't reflect your true level of impairment because it was evaluated while you were on medication, you may have grounds for an appeal or supplemental claim. Make sure to document:
- All medications you take for your service-connected condition
- How you would function without those medications
- Any periods when you couldn't take medication and how your symptoms worsened
- Side effects from medications that also impact your functioning
Lorio v. Collins, 38 Vet. App. 120 (2025): VA Must Follow Proper Process When Withholding DIC Benefits
The Bottom Line
The VA must provide fair process and use correct legal authority when withholding Dependency and Indemnity Compensation (DIC) benefits to offset Survivor Benefit Plan (SBP) payments. Additionally, as of February 1, 2023, the SBP-DIC offset has been completely eliminated.
What Happened in This Case
Milton Lorio served in the U.S. Army and retired before passing away in 1994. His widow, Ms. Lorio, began receiving Survivor Benefit Plan (SBP) payments in 1994 and filed for Dependency and Indemnity Compensation (DIC) benefits shortly after her husband's death.
In 2015—over 20 years later—the VA granted Ms. Lorio entitlement to DIC retroactive to 1994. However, instead of paying her the retroactive benefits, the VA withheld them to offset the SBP payments she had already received. The Defense Finance and Accounting Service (DFAS) informed the VA of an "overpayment" totaling $302,188.88 (after refunding $10,651.12 in SBP premiums).
Ms. Lorio challenged the VA's authority to withhold these payments, questioned the process used, disputed the accounting, and raised concerns about tax implications.
The Court's Decision
The CAVC found that the Board of Veterans' Appeals had:
- Denied Ms. Lorio fair process
- Relied on incorrect legal bases when deciding to withhold DIC payments
The November 2021 Board decision was set aside, and the case was remanded with instructions to provide valid legal authority for any withholding of benefits.
Important Update: The SBP-DIC Offset Has Been Eliminated
Here's critical information every surviving spouse needs to know:
- The Department of Veterans Affairs (VA) pays DIC benefits
- The Defense Finance and Accounting Service (DFAS) pays SBP benefits
- Before 2023, if a surviving spouse received both SBP and DIC, DFAS would reduce the SBP payment by the amount of the DIC benefit
- With the passage of the 2020 National Defense Authorization Act, the offset was eliminated in phases
- As of February 1, 2023, the SBP-DIC offset is completely gone
Why This Matters for Surviving Spouses
If you are a surviving spouse receiving both SBP and DIC benefits, you should now receive the full amount of both benefits without any reduction. This represents a significant financial improvement for military surviving spouses across the country.
Action Step:
If you're a surviving spouse and:
- You're receiving SBP but haven't applied for DIC, you should explore whether you're eligible
- Your DIC application was denied in the past, you may want to file a supplemental claim with new evidence
- You believe the VA improperly withheld benefits or used incorrect calculations, you may have grounds for an appeal
- You're still experiencing an offset after February 1, 2023, contact DFAS immediately as this should have been corrected
Smith v. Collins, 133 F.4th 1059 (Fed. Cir. 2025): Limits on Accrued Benefits After a Veteran's Death
The Bottom Line
When a veteran dies during the appeals process, family members who are substituted as claimants can only receive accrued benefits up to the amount needed for last sickness and burial expenses if they are not a minor child or surviving spouse. Even if an earlier effective date is granted, additional retroactive benefits are capped at actual expenses incurred.
What Happened in This Case
Joshua Smith, Sr. was granted service connection for PTSD with an effective date based on his 2010 request to reopen his claim. Mr. Smith appealed for an earlier effective date, and the case was remanded for additional records.
During the ongoing adjudication process, Mr. Smith, Sr. passed away. His adult son, Joshua Smith, Jr., was substituted as the claimant to continue the appeal.
The Board eventually located a PTSD diagnosis from 2007 and granted an earlier effective date. However, the Board limited the benefits to burial and last sickness expenses. The VA calculated that accrued benefits exceeded the actual burial and last sickness expenses of $1,143, and payment was pending evidence of additional expenses.
The Court's Decision
The Federal Circuit held that as a substituted party following the veteran's death, Joshua Smith Jr. was only eligible for accrued benefits needed for last sickness and burial expenses under the statutory scheme because he was an adult child and not eligible for full survivor's benefits. Key findings included:
- Even if an earlier effective date was granted for disability compensation, the amount payable would be capped at actual expenses
- Since the expenses had already been reimbursed, the appeal was essentially moot
- No additional retroactive benefits would be payable regardless of the effective date decision
Why This Matters for Veterans and Their Families
This case underscores a critical truth: the value and scope of VA disability benefits change dramatically after a veteran's death.
While the veteran is alive, they are entitled to monthly disability compensation, which accumulates over time. If an earlier effective date is granted, substantial retroactive payments can be awarded. However, once the veteran passes away, those monthly compensation benefits end, and only limited accrued benefits are available to family members who are not minor children or a surviving spouse—specifically, amounts needed for burial and last sickness expenses.
Action Steps:
For Veterans:
- Don't delay pursuing your VA disability claim or appeal
- The full value of your benefits may only be available during your lifetime
- If you're waiting on a decision or pursuing an appeal, stay proactive and engaged in the process
- Consider getting legal representation to expedite your claim
For Family Members:
- If your veteran family member has a pending claim or appeal, encourage them to pursue it actively
- After a veteran's death, explore DIC benefits for surviving spouses and dependent children—these are separate from accrued benefits
- Keep detailed records of all expenses related to the veteran's last illness and burial
What These Cases Mean for Your VA Disability Claim
These three recent decisions from the Court of Appeals for Veterans Claims demonstrate the complexity and evolving nature of veterans' law. Each ruling has significant implications:
- Ingram v. Collins ensures that veterans on medication receive fair disability ratings based on their true level of impairment
- Lorio v. Collins protects surviving spouses' rights to proper process and full benefits (especially with the SBP-DIC offset elimination)
- Smith v. Collins emphasizes the importance of pursuing claims while the veteran is still living
How We Can Help
At Sean Kendall Law, we stay current on all CAVC decisions and understand how to apply these rulings to protect our clients' rights. Whether you're dealing with:
- A disability rating that doesn't account for medication use
- Surviving spouse benefits and DIC claims
- Effective date disputes
- Complex appeals at any level
- Board of Veterans' Appeals decisions
- CAVC appeals
We have the experience and knowledge to guide you through the process.
Don't Navigate This Alone
VA disability law is complicated, and the stakes are high. These cases illustrate how critical legal nuances can mean the difference between receiving the benefits you deserve and being denied.
If you have questions about how these recent cases might affect your claim, or if you need help with any aspect of your VA disability benefits, we're here to help.
