My wife served 6 years in the reserved and sprained her back on duty. They gave her a medical discharge, then denied her medical and then the IRS took back her GI Bill money while she was in school. When we questioned them on it they said due to the privacy act they could not tell if her discharge was due to injury or drug abuse.
One thing the government does well is screw the Vets.
Oh, one other thing, a medical discharge IS now called a less than Honorable. She recovered from the back injury before they drummed her out, but Clintoon wanted to downsize the military and that was their excuse.