Over $6.8M in PACT Act Benefits Paid Incorrectly, Audit Finds

A report released Tuesday by the Department of Veterans Affairs Office of Inspector General (OIG) reveals that thousands of veterans experienced either overpayments or underpayments due to errors in disability claims processed under the 2022 PACT Act.

The report indicated that approximately 26,000 claims were handled with inaccurate “effective dates,” leading to $6.8 million in erroneous payments. Additionally, 2,300 claims may have been underpaid, although the precise financial implications remain undetermined. The mistakes were mainly due to the intricate nature of the legislation and a lack of adequate guidance from the Veterans Benefits Administration (VBA).

The PACT Act, enacted on August 10, 2022, broadens health care and benefits for veterans who encountered hazardous environmental conditions while serving in designated combat zones. The law permits retroactive compensation provided that claims or intent-to-file notices were submitted by August 10, 2023.

In reviewing 100 claims submitted during the law's inaugural year, it became evident that claims processors frequently assigned inaccurate start dates, which could be attributed to insufficient training or defective automated tools.

“Certain veterans did not obtain accurate benefit payments,” stated the VA's assistant inspector general, Larry Reinkemeyer,  for audits and evaluations. “Claims were decided by processors before completing all the required steps.”

The report from the watchdog suggested several corrective measures, such as enhanced training, updates to tools, and evaluations of impacted claims. Performing as the VA Under Secretary for Benefits, Michael Frueh acknowledged the findings and committed to ensuring that all changes would be implemented by May 31, with reviews of the identified 24 erroneous claims finalized by April 30.

As lawmakers discuss the proposed VA staffing cuts, some caution that these reductions could impede the implementation of the PACT Act even further. “When you terminate VA employees, veterans are the ones who face the consequences,” stated Sen. Maggie Hassan, D-N.H.

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