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Federal Policy And The Rise In Disability Enrollment: Evidence For The Veterans Affairs’ Disability Compensation Program, Mark Duggan May 2010

Federal Policy And The Rise In Disability Enrollment: Evidence For The Veterans Affairs’ Disability Compensation Program, Mark Duggan

Health Care Management Papers

The U.S. Department of Veterans Affairs compensates 13 percent of the nation’s military veterans for service‐related disabilities through the Disability Compensation (DC) program. In 2001, a legislative change made it easier for Vietnam veterans to receive benefits for diabetes associated with military service. In this paper, we investigate this policy’s effect on DC enrollment and expenditures as well as the behavioral response of potential beneficiaries. Our findings demonstrate that the policy increased DC enrollment by 6 percentage points among Vietnam veterans and that an additional 1.7 percent experienced an increase in their DC benefits, which ...