$450 Million in Bogus Disability Payments May Be Doled Out by VA

The Veterans Affairs Department could pay out $450 million in disability payments to veterans who don’t qualify because no one is reviewing medical records, a report released Friday said.

As of January, the Veterans Benefits Administration (VBA) had already paid out $85 million covering almost half of its claims that “lacked adequate medical evidence,” said a report by the agency’s internal watchdog, the Inspector General.

And if the agency doesn’t take action, it could risk another $371 million over the next five years.

The issue centers on payments to veterans who have been evaluated with 100 percent disability. Fortunately, the diagnosis of complete disability is usually temporary, and veterans are suppose to have a second evaluation to determine their more long-term disability rate.

The problem is that out of 8,300 temporary 100 percent disability ratings that were suppose to be looked at a second time, almost 88 percent of them have never gotten a second glance.