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Qualifications for classifications of "Service Connected Disability" are changing all the time. Meaning that she may be entitled to benefits she was not entitled to previously.
Contact a VSO (a CERTIFIED Veteran Services Officer) near you by searching the web. They will help her get A&A. Do not go thru a VA Medical Social Worker, they are independent contractors, and also incompetent.
A&A is a benefit given when the vet is considered "house bound." Just being unable to drive qualifies! Get her Form DD-214 first. That's what the VSO will require to get started. I wasted 2 yrs trying various VA Social Workers and VA Geriatric doctors, who were all useless.
The VSO knows the various assortment of forms needed to apply. A retired Lt. Col. with Alz should not be treated like a nobody at all! The VSO's excellent services are FREE. Civilians (such as the lawyer who misinformed you) have no clue about the Dept. of Veterans Affairs system whatsoever.
If she worked in Vietnam as a nurse, she was likely exposed to Agent Orange. Has she been given Level 4 medical priority? The VA doctor should have applied for that on her behalf. That means she never pays for any VA Medical anything ever again. She'd rank under #3 (a POW), as far as benefits.
If in Vietnam, she has likely had PSTD for years, as well as was exposed to Agent Orange, which causes dementia, cancers and kidney disease, among other nasty complications. Her Primary doctor verifies her Alzheimers on one 3 page form, and she's good as gold.
Let the VSO you find know of her Vietnam service and high rank, and what BS that worthless lawyer told you. He will be FURIOUS. If you are near California, PM me and I'll get my VSO on this. He is a member of Vietnam Veterans of America, and a CERTIFIED VSO. He is a Vietnam combat veteran, who has helped hundreds of veterans for over 25 years get what they deserve.
I'm upset hearing this myself, since my Dad was a Lt. Col. in Army 101st Airborne. She is owed by the US Govt, big time. Wow.