Military Medical Discharge Explained

Updated Oct. 18, 2024

The different types of military medical discharge, including medical separation and medical retirement can have significant impacts on your life and livelihood after military service. Transitioning out of military life can be stressful enough, so it’s vital that you receive the benefits you’re entitled to.

The Basics on Medical Separation, Medical Retirement

If you’re injured and a military doctor or your command doesn’t think it will improve enough for you to return to your duties within a year, they’ll initiate the first steps of the Integrated Disability Evaluation System (IDES).

The IDES is a joint evaluation process between the Department of Defense (DOD) and Department of Veterans Affairs (VA). It begins with you being referred to a Medical Evaluation Board (MEB) for evaluation.

Eventually, the MEB forwards its decisions and findings on your conditions to a Physical Evaluation Board (PEB), which shares information with the VA.

Finally, the VA assigns a disability rating according to the Veterans Affairs Schedule for Rating Disabilities (VASRD) before the PEB makes its rating decision.

Medical Retirement vs. Medical Separation from the Military

Once final decisions have been made by the PEB, service members receive their disposition, which will fall under one of the three major categorizations:

• Medical Retirement is granted when a service member's disability is rated 30% or higher and is service-related. It can be permanent or temporary, and is reassessed every 18 months. Retired members are eligible for lifetime VA healthcare and monthly compensation.

• Medical Separation occurs when a service member is deemed unfit for duty with a disability rating below 30% or with fewer than 20 years of service. They may receive a one-time severance pay if the injury is service-related, but not lifetime benefits.

• Fit for duty is the most straightforward disposition you can receive. If you're found to be physically capable of performing your duties, or that you could be fit for duty after rehabilitation, physical therapy, or other treatments, you'll be deemed "fit for duty" and you’ll be able to return to active duty.

Now, let’s take a deeper dive into what determines your disposition and the compensation you can expect from it.

Medical Separation From the Military

Medical separation from the military primarily comes in two forms: with either benefits and pay or severance pay, versus without benefits and pay or severance pay. Your disposition will depend on factors such as the nature and the cause of your disability. Let's take a look at what determines those differences.

Military Medical Separation Pay

If you are medically separated with severance or benefits, your severance is a one-time payment. It’s equivalent to two months of your basic pay for each year of eligible service (both active and inactive), with a maximum of 19 years. To receive Disability Severance Pay (DSP), you need to meet the following criteria:

• You’ve served fewer than 20 years

• You’ve received a disability rating lower than 30%

• You’ve been found unfit for duty

If your injury is determined to be service related, you may also be eligible for monthly compensation from the VA, although you can’t receive payments from the VA and severance compensation from the Military, as they’ll offset one another.

Medical Separation Without Severance or Benefits

If you are medically separated due to preexisting disabilities, you typically won't receive severance payment if your injury or disability is determined to be unrelated or not aggravated by your duty.

Keep in mind that medically-separated service members are unlikely to receive any severance pay if their disabilities occurred prior to service (e.g., a pre-existing condition*) or while they were absent without leave (AWOL) or because they were conducting themselves in a negligent manner.

If your injury is determined to be service related at a later date, you may also be eligible for monthly compensation from the VA, although you can’t receive payments from the VA and severance compensation from the Military, as they’ll offset one another.

Note that the military may be responsible for a pre-existing medical condition that was exacerbated while in or because of service.

Medical Retirement From the Military

Like medical separation, medical retirement can be broken down further into two distinct categories: permanent and temporary medical retirement.

Permanent Medical Retirement

When your disability is stable and is rated at a minimum of 30%, you may be permanently medically retired. Like with medical separation, if your disability is determined to be service-related, you may be eligible for additional VA benefits or disability compensation, although the VA and DOD benefits will offset each other.

If you are permanently medically retired due to injuries related to your service, you’ll be eligible for free VA healthcare for your lifetime. Additionally, you may be eligible to receive monthly compensation depending on your disability rating. This monthly compensation will help account for the income lost due to your disability. The amount you receive will vary depending on other factors such as dependent children, dependent parents, or your marital status.

Temporary Medical Retirement

If you are temporarily medically retired, you’ll be placed on the Temporary Disability Retirement List (TDRL). While on TDRL you will have your disabilities reevaluated every 18 months for up to three years. If you’re found fit for duty during your time on the TDRL, you’ll be returned to duty.

When you’re placed on the TDRL, you’re automatically rated at a minimum of 50%. However, like with permanent medical retirement benefits, the amount you ultimately receive can vary according to your marital status and the number of dependents you have.

However, if the three years expire and you haven’t been removed from the Temporary Disability Retirement List, one of two things will happen:

1. You’ll be permanently medically retired if your disability stabilizes at a rating of 30% or higher

2. You’ll be medically separated with severance if your disability stabilizes at a rating of less than 30%

Concurrent Retirement Disability Pay and Combat-Related Special Compensation

If your disability is due to armed conflict, hazardous duty, simulated war, or an instrumentality of war, you may be eligible to receive Combat-Related Special Compensation (CRSC). If you receive or are entitled to retired pay, you can waive your VA pay from your retired pay to collect this additional monthly payment.

Comparatively, CRDP allows veterans to receive VA compensation for service-related disabilities, as well as compensation for the military retirement pay they have waived in order to receive their VA disability pay. To qualify for CRDP, you must have a VA disability rating of at least 50% and meet certain retirement requirements from the military.

Additionally, you will be eligible for both VA disability compensation and retired pay if you meet the requirements for CRDP and have also received an Individual Unemployability (IU) rating from the VA (as of October 1, 2008, and retroactive to January 1, 2005).

However, you can’t receive both CRSC and Concurrent Retirement Disability Pay (CRDP). If you are eligible for both CRSC and CRDP, you’ll automatically receive the benefit with the most beneficial gross payment.

Summary of Key Points

Medically Separated vs. Medically Retired: What’s the Difference?

The key difference between medical separation and medical retirement lies in the severity of the disability and the long-term benefits provided.

• Medical separation applies to service members with a disability rating below 30% or fewer than 20 years of service, often offering a one-time severance pay.

• Medical retirement is granted when the disability is rated 30% or higher, providing lifetime benefits such as VA healthcare and monthly compensation. Retirement can be permanent or temporary, with regular evaluations for those on temporary status.

Medical Separation Pay vs. Medical Retirement Pay

With medical separation, eligible service members receive a one-time severance pay, which is typically two months of basic pay for each year of service, capped at 19 years. There are no long-term payments or benefits unless the disability is later deemed service-connected by the VA.

In contrast, medical retirement provides ongoing monthly compensation based on the disability rating and years of service, along with lifetime benefits like VA healthcare. For temporary medical retirement, members receive a minimum of 50% of their base pay during evaluations.

What to Do if You Disagree With Your IDES Disposition or Rating

The IDES is a massive benefit to service members going through a very stressful time in their lives. It saves countless hours of hassle by allowing the DOD and the VA to work simultaneously, plus, it gets veterans their benefits as quickly as possible.

But for all the ways the IDES helps veterans, it’s not without flaws. Receiving the wrong disposition or inadequate compensation for your service can have a seriously adverse impact on your quality of life.

Fortunately, you can appeal to the MEB if your medical conditions aren’t accurately represented, and you can have private legal counsel help you present the legal and medical issues to the MEB. If you still receive the wrong disposition, you can appeal the PEB and related board's determinations of disability rating, lack of service-connection, line of duty determinations, determination of fitness, and request a Formal Physical Evaluation Board (FPEB) with the assistance of a private lawyer. If you believe you or a loved one need more than what a military detailed counsel can provide, contact the Law Office of Michael D.J. Eisenberg today.

Mr. Eisenberg has over 15 years of experience working with Veterans benefits matters. He can help you present your case with the dedication and persistence to help you get the results you are entitled to.

Note: Consultations for Medical/Physical Evaluation Boards and Military Records Issues are paid; however, Veterans’ Benefits Appeals Matters are free.