Accuracy of Effective Dates for Reduced Evaluations Needs Improvement

The VA Office of Inspector General (OIG) reviewed whether the Veterans Benefits Administration (VBA) accurately notified veterans of proposed reductions in their disability evaluations and assigned correct effective dates for reduced evaluations completed from February 1 through July 31, 2017. The OIG estimated that 2,200 of 5,900 cases (38 percent) were processed incorrectly by VBA staff, resulting in an average improper payment rate of $2,000 per veteran. The OIG estimated that over a five-year period, VBA staff would make improper payments to over 22,300 veterans totaling more than $27.5 million. In addition, based on the OIG’s projections and estimates, veterans potentially could have received improper payments totaling approximately $10.4 million, of which approximately $7.8 million would be ongoing monthly improper payments. Errors included the assignment of incorrect effective dates for reduced disability evaluations; staff not sending amended notifications when the reasons for the proposed reductions changed; and staff providing inaccurate, or failing to send, initial notifications to veterans that their benefits may be reduced. These errors occurred because VBA staff did not always immediately process final actions for reduced evaluations, VBA’s electronic claims processing system defaulted to incorrect effective dates, compensation service staff did not require refresher training on how to process reduced evaluations, Veteran Service Representatives were more focused on meeting workload production standards and not ensuring correct effective dates, and VBA procedures did not specify when staff need to send notifications in the event a veteran’s disability evaluation is reduced. The OIG recommended VBA implement a plan to ensure the timely processing of these cases; modify the Veterans Benefits Management System to apply correct effective dates; provide refresher training; update guidance on amended proposal letters; and conduct reviews for veterans who had evaluations reduced, take corrective action, and provide certification of completion to the OIG.