VA Disability Payment System Error May Have Shortchanged Veterans for Years

A recent report from the Department of Veterans Affairs Inspector General (IG) highlighted potential underpayments in monthly disability benefits stemming from inaccuracies in a VA software calculator. The glitch may have significantly affected severely disabled veterans dating back to 2017.

The IG discovered that an automated tool utilized by the Veterans Benefits Administration (VBA) might have generated inaccurate benefit amounts, especially for veterans qualified for special monthly compensation — additional payments for severe conditions such as amputations, blindness, or the requirement for personal care assistance.

Although the IG did not conduct audits of individual claims, simulations indicated that certain veterans might have experienced underpayments ranging from $132.74 to as much as $4,170.59 each month. In certain instances, the software might have resulted in overpayments totaling $373.18.

The issue stemmed from the VA's dependence on two computer systems — an older “legacy” calculator and a more recent, automated version. The latter aimed to enhance processing efficiency but allegedly miscalculated the special monthly compensation when combined with the base disability benefits.

“The IG stated that this excessive dependence on the user-friendly calculator might have led to inaccurate monthly benefits payments.”

The VA has subsequently removed the flawed program from operation and committed to executing the recommendations outlined in the report. “The VBA agrees with the findings of the report,” VA officials stated, noting that they are in the process of developing corrective actions.

Veterans are eligible for disability benefits based on a ratings system that can extend to 100%, along with extra compensation for severe cases. The automated errors occurred when the new system failed to assign letter-coded compensation categories accurately.

The VA has not yet established the duration of the issue or the number of veterans who may have been impacted. The IG’s report did not include investigations into actual payment records.

Veterans with concerns about their benefits are advised to contact the VA for personalized assessments.

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