The Department of Veterans Affairs building in Washington. (Stars and Stripes)
WASHINGTON — A benefits calculator that the Department of Veterans Affairs used for figuring monthly compensation amounts for disabled veterans had errors that incorrectly lowered payments for certain complex illnesses and injuries, a federal watchdog found.
The VA Office of Inspector General reported findings from a review of an automated compensation calculator that was part of a web-based benefits management system.
Findings were not based on actual identified claims of individual veterans, the inspector general said.
The inspector general’s office was responding to a report in November 2023 that the automated compensation calculator did not always generate the correct results for determining disability compensation, according to a report the inspector general released last week.
“The OIG review team confirmed that the calculator generated inaccurate results for the disability scenarios listed in the allegation and for several others identified by the team,” the report said.
Disability compensation is a tax-free payment that the VA dispenses monthly to veterans who were injured or developed illnesses connected to their military service.
The VA has an online system for managing veterans benefits that “supports end-to-end claims processing,” according to the review by the inspector general.
In October 2024, the VA discontinued the calculator that was producing the errors but continued to use an older “legacy” calculator that was functioning correctly, the inspector general’s office said.
VA said it did not know the reason for the miscalculations or for how long the problems had been occurring, according to the report.
“In some instances, veterans could receive incorrect monthly benefits payments — most of which would be underpayments — if claims processors relied on the incorrect results,” the report said.
Mistakes in underpayments ranged from $132 to $4,170. Monthly overpayments of $373 also were reported.
Errors resulted when the calculator was figuring payments for certain disability combinations, according to the review. But when the same information on disabilities was entered into a standalone legacy calculator, it produced accurate results, the report said.
The errors involved payments for a range of disabilities, including illnesses and injuries that incapacitated veterans who required an aide or caregiver.
Inaccurate calculations also were found in figuring compensation for the loss of limbs, blindness in both eyes and other disabilities — or combinations of disabilities, according to the report.
The goal of the report was to assess the calculator’s accuracy, according to the inspector general’s office.
The review team did not recheck actual individual claims or try to identify veterans who might have been affected, according to the report.
VA officials agreed with the inspector general’s recommendation that it needed to correct all the errors identified and establish a plan to conduct additional tests before making plans to reactivate the calculator.
The inspector general’s office said it was monitoring the VA’s progress for taking the recommended measures to fix the problems.
