Claims Processing Report

Inspector General Review of State Variances in VA Disability Compensation Payments

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Inspector General Review of State Variances in VA Disability Compensation Payments (7.95 MB PDF)

VA Response to IG Recommendations

VA Response to IG Report

VA Response to IG Recommendations

• Secretary Nicholson has signed a directive charging the Under Secretary for Benefits and the Acting Assistant Secretary for Policy, Planning, and Preparedness to enter into a contract with the Institute for Defense Analysis to further study ways to monitor and understand differences in disability payments so we can better detect and prevent unacceptable patterns in the future.

• Support the Disability Benefits Commission as it considers fundamental changes to improve VA’s disability compensation program.

• Review our rating practices for Post Traumatic Stress Disorder, determinations of an individual’s unemployability, and other 100-percent disabled ratings to ensure consistency and accuracy.

• Expand the quality assurance programs for evaluating Post Traumatic Stress Disorder to improve consistency of documentation required to substantiate events that played a part in causing the PTSD.

• Improve coordination with our VA health and medical centers to provide more consistent medical examinations to support our disability evaluations, and ensuring all medical and rating staff are familiar with the process.

• Reevaluate our human resources to make sure VA field organizations are fully staffed and equipped.

• Review prior VA studies concerning lump-sum payments to veterans with disability ratings of 20 percent or less and supporting the Disability Benefits Commission as it considers this public policy issue.

Further, we are currently in the process of studying claims submission patterns from different categories of veterans – those of different wars and those living in particular parts of the country – to ensure that all veterans are being properly served and have equal access to VA compensation programs.

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VA Response to IG Report

Former Secretary Anthony J. Principi asked for an independent system-wide review of our disability compensation process. The Inspector General has delivered a comprehensive report that includes 8 recommendations for improving our disability claims process. We are responding to all 8 of those recommendations.

• For 75 years now, the Department of Veterans Affairs has honored this nation’s commitment to our veterans through a vast array of benefits and services. Whether it’s quality health care, home loans, life insurance, education benefits, vocational rehabilitation, disability compensation or burial, our top priority has always been to do what’s right for every veteran in our system.

• The Inspector General has delivered a comprehensive report that includes 8 recommendations for improving our disability claims process. We are responding to all 8 of those recommendations. Our actions include:

• Our benefits employees have one goal – to do what’s right for every veteran in our system. The Secretary is proud of their commitment to this cause and the hard work they do every day.

• We expect every veteran’s claim to be treated fairly and equitably. Claims processing is a complex process that we want to make sure the system “works” for all veterans.

• The IG findings reaffirm our belief that there is no single cause or simple combination of factors resulting in differences in some disability payments.

• A difference in disability payments from state to state does not mean the system is fundamentally flawed. Quite to the contrary – the IG report found many factors can contribute to differences. There are more than 20 different demographic factors – including the number of enlisted veterans living in a state vs. the number of officer veterans; period of service; branch of service; the number of veteran dependents; age of veterans – and more – that factor into a veteran’s compensation claim.

Some disabilities are more difficult for decision-makers to consistently evaluate. Unlike limb loss or physical injury cases, veterans claiming PTSD present a unique challenge. These cases are rarely cut and dry – they require a degree of subjectivity on the part of our raters.

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