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Key points
- For current VA health-care copay bills, you may request a waiver, compromise offer, or repayment plan; the available option depends on your circumstances.[1][2]
- If your income has decreased, you may request a VA hardship determination and, if eligible, an exemption from future VA copays for the rest of the calendar year; pharmacy medication copays are excluded.[1]
- Priority processing for an existing claim is a separate process. Extreme financial hardship or risk of homelessness may qualify, but supporting evidence is encouraged and faster processing is not guaranteed.[3]
- VA benefit eligibility generally requires service under other than dishonorable conditions, but some people with undesirable, bad-conduct, or other-than-honorable discharges may qualify after a VA determination.[4]
VA financial hardship assistance depends on what you owe or what you are applying for. For VA health-care copay bills, VA describes debt relief, repayment plans, and a hardship determination that may exempt eligible Veterans from future copays. For an existing VA claim, a separate priority-processing request may apply in certain circumstances. These are not general cash assistance programs, so review the current VA instructions before you apply.[1][2][3]
What does VA consider a financial hardship?
VA's current health-care guidance addresses situations such as losing a job, a sudden decrease in income, or an increase in out-of-pocket family health-care expenses. The page focuses on current VA copay bills and possible exemptions from future copays—not rent, mortgage, utility, repair, or other general living expenses.[1]
A VA health-care copay bill, a benefit overpayment, and a pending disability claim can have different rules and forms. Identify the debt or claim category first, then follow the current VA instructions for that category.[2][3]
What help is available for VA health-care copay bills?
If you cannot afford a current VA copay bill, VA says you may request debt relief. Depending on the decision, that can mean a waiver of all or part of the balance or a compromise offer for a smaller one-time payment. You may also set up a monthly repayment plan based on the amount owed and your ability to pay.[1]
For future copays, you may request a hardship determination with VA Form 10-10HS if your income has decreased. If eligible, VA may assign you to a higher priority group and exempt you from VA copays for the rest of the calendar year. The exemption does not apply to pharmacy medication copays.[1][5]
- Gather the bill and financial information Keep the copay bill and documents that explain why payment is difficult. VA may ask for a Financial Status Report, VA Form 5655, for a waiver or compromise request.[1]
- Choose the correct request Use the VA health-care instructions for debt relief or a repayment plan. If the concern is future copays after an income decrease, review the hardship-determination process instead.[1]
- Submit through VA's stated channel Follow the current form and submission instructions, and keep copies of what you send. Contact VA directly if you need help completing a form.[1]
What if you owe another type of VA debt?
VA benefit overpayments have their own options. Current VA debt guidance lists repayment plans, compromise offers, waivers, hardship suspensions, and disputes when applicable. A dispute may be appropriate if you believe the debt is incorrect. The deadline and evidence requirements depend on the request, so do not assume that a health-care copay process applies to a benefit overpayment.[2]
How does financial hardship affect a VA claim?
If you already have a VA claim, you may request priority processing when you are homeless or at risk of homelessness, experiencing extreme financial hardship, or facing another qualifying circumstance. VA's Request Priority Processing form lists examples of evidence such as an eviction or foreclosure notice, past-due utility notices, or collection notices.[3]
Can a hardship-related discharge affect VA benefits?
A hardship-related separation does not by itself establish eligibility for VA benefits. VA generally requires a character of discharge or service under other than dishonorable conditions. However, people with undesirable, bad-conduct, or other-than-honorable discharges may qualify after VA makes a character-of-discharge determination. Eligibility also depends on the specific benefit and the facts of your service.[4]
If this describes your situation, review current VA guidance or work with a VA-accredited representative. Do not assume that a discharge label alone answers every benefit question.[4]
A practical next step
Start by identifying whether your issue is a VA health-care copay, a benefit overpayment, or an existing claim. Then use the official VA page for that category. Veterans Advantage Financial® is an independent insurance agency, not part of or endorsed by VA or any government agency. For Medicare questions, you can read our Veterans Medicare FAQ, learn about VA health care and Medicare, or book a call.[1][2][3]
Common questions
Does VA offer a general hardship loan or monthly hardship grant?
The current VA guidance reviewed here describes copay debt relief, repayment plans, hardship determinations, and claim priority processing. It does not establish a general-purpose loan or monthly grant for rent, food, utilities, or other living expenses.[1][2]
How can I get help with a VA copay bill?
For a current VA health-care copay bill, VA says you may request a waiver, compromise offer, or repayment plan. If your income has decreased, you may separately request a hardship determination and copay exemption for future copays if eligible.[1]
Can financial hardship speed up a VA disability claim?
You may request priority processing for an existing claim if you have a qualifying circumstance such as extreme financial hardship or risk of homelessness. VA encourages supporting evidence, but priority processing is not a fixed decision time or approval guarantee.[3]
Can I qualify for VA benefits with an other-than-honorable discharge?
Possibly. VA generally requires service under other than dishonorable conditions, but some people with undesirable, bad-conduct, or other-than-honorable discharges may qualify after a VA character-of-discharge determination. Benefit-specific rules still apply.[4]
Sources
- U.S. Department of Veterans Affairs. “Request VA financial hardship assistance.” VA.gov, last updated February 17, 2026. va.gov/health-care/pay-copay-bill/financial-hardship
- U.S. Department of Veterans Affairs. “Options to request help with VA debt.” VA.gov, last updated September 8, 2026. va.gov/resources/options-to-request-help-with-va-debt
- U.S. Department of Veterans Affairs. “Request priority processing for an existing claim online.” VA Form 20-10207, VA.gov. va.gov/forms/20-10207/request-priority-processing
- U.S. Department of Veterans Affairs. “Applying for Benefits and Your Character of Discharge.” Veterans Benefits Administration, last updated April 16, 2025. benefits.va.gov/benefits/character_of_discharge.asp
- U.S. Department of Veterans Affairs. “VA priority groups.” VA.gov. va.gov/health-care/eligibility/priority-groups
Sources checked October 11, 2026. Dollar amounts are for 2026 unless noted.
This is general education, not personal advice, and it isn’t a recommendation of any specific plan. Veterans Advantage Financial® is a licensed insurance agency, not affiliated with or endorsed by Medicare, Social Security, VA, TRICARE or any government agency. Plan availability, costs and benefits vary by plan, county and year. Check your own situation with the agency or plan before making changes.
Christopher Duncan
Christopher founded Veterans Advantage Financial® and has helped people with Medicare since 2006. He is a licensed insurance agent in all 50 states and DC (NPN 8613503). His dad, Wallace, is a Vietnam-era veteran.