Better re-check your sources.
The new agency was responsible for medical services for war veterans; disability compensation and allowances for World War I veterans; life insurance; bonus certificates; retirement payments for emergency officers; Army and Navy pensions; and retirement payments for civilian employees.
https://www.va.gov/opa/publications/archives/docs/history_in_brief.pdf
In 1976 you could not get into a VA hospital unless you were CAT 1 and you were seriously disabled as per the VA. That was 50% or more disabled. If less you got little or nothing. I saw the drunks and fakes in the winter.