A Department of Veterans Affairs plaque. (Stars and Stripes)
WASHINGTON — Problems with the privately contracted disability exams veterans undergo to determine their benefits were the focus of a House Veterans’ Affairs subcommittee hearing Thursday that revealed cases of medical reviews done in hotel rooms, veterans sent to the wrong exams, or examiners assigned to determine benefits for injuries and illnesses they’ve never before treated.
Lawmakers shared with officials from the Department of Veterans Affairs the complaints their offices frequently receive from veterans who must have the disability medical exams that are critical for deciding monthly disability compensation.
More than 90% of veterans’ disability medical exams are done by private contractors under a multiyear contract with a budget ceiling of $13 billion.
“That’s an enormous operation, and it demands serious oversight,” said Rep. Morgan Luttrell, R-Texas, chairman of the House VA subcommittee on disability assistance and memorial affairs.
“Improving Outcomes for Disabled Veterans: Oversight of VA’s Medical Disability Examination Office” was the title of the 90-minute hearing that reviewed problems identified in the program and VA’s response to them.
Disability medical exams document the evidence related to a veteran’s illnesses and injuries connected to military service. Millions of veterans each year face the medical reviews.
A director from the Government Accountability Office also testified that nearly $2.3 million in overpayments of “financial incentives” were made to the private contractors that provided the exams.
“Conducting quality exams is important because errors can result in costly rework and delays in processing claims,” said Elizabeth Curda, the GAO’s director of education, workforce and income security.
Curda reported the GAO’s findings from audits of the disability medical exam program in 2024 and 2025.
The GAO identified “breakdowns” in how the VA identifies and corrects problems in the way exams are conducted, as well as in awarding incentive payments to contractors.
“If an exam is wrong, incomplete, inaccurate or delayed, the veteran might not receive the benefits they earned from their service,” said Rep. Morgan Luttrell, R.-Texas, chairman of the House Veterans’ Affairs subcommittee on disability assistance and memorial affairs. A hearing Thursday examined problems in the disability exam program for determining a veteran’s eligibility for benefits. (Screenshot from the hearing)
“If an exam is wrong, incomplete, inaccurate or delayed, the veteran might not receive the benefits they earned from their service,” Luttrell said.
The VA’s Medical Disability Examination Office has lacked written procedures for checking the accuracy of its calculations in awarding the bonuses, resulting in almost $2.3 million in overpayments in fiscal year 2024, Curda said.
The GAO recommended ways to improve the exams and ensure that incentive bonuses for contractors — which are based on timeliness, quality and “customer experience” — are awarded correctly.
The VA also fell behind conducting quality checks of the exams for complex medical problems, such as traumatic brain injuries, Gulf War illness and military sexual trauma.
In September, the VA’s Medical Disability Examination Office said it planned to extend the timeline — from a two-year to three-year schedule — because “staff who conduct complex claim [reviews] had been reduced by half,” according to the GAO report.
Mary Glenn, deputy executive director of the Medical Disability Examination Office, said “everything in a veteran claims folder” is forwarded to the examiner. “It is done automatically as soon as the veteran is scheduled.” Veterans have complained that their medical records of service-connected injuries and illnesses often were incomplete. (Screenshot from the hearing)
The office also recouped the overpayments to contractors, said Mary Glenn, deputy executive director of the VA Medical Disability Examination Office.
But Rep. Jack Bergman, R-Mich., said he is still concerned about the frequency of complaints by veterans who say their medical records with information on the diagnosis and treatment of service-connected conditions were not sent to the examiner.
He urged the Medical Disability Examination Office to review its process for forwarding medical evidence to examiners.
Glenn said that examiners receive “everything in a veteran claims folder. It is done automatically as soon as the veteran is scheduled,” she said. “The examiner’s job is to review the entire file.”
Rep. Morgan McGarvey, D-Ky., said that “in too many instances the system fails too many veterans.” McGarvey said he has heard complaints from constituents mistakenly sent to exams that had nothing to do with their medical condition.
McGarvey said he even received complaints from veterans whose disability medical exams were conducted in hotel rooms and not at a medical office.
“The Medical Disability Examination Office thinks everything is running smoothly, but it does not match up with what we are seeing,” McGarvey said.
Paralyzed Veterans of America also complained in written testimony that some medical offices where exams were conducted could not accommodate wheelchairs.
Glenn said the VA has tightened requirements for examination space and launched an online portal in September that allows examiners to provide the VA with feedback, ask questions and offer ideas for improvement.
“I know you are working on fixing problems,” Luttrell said to Glenn and other VA officials at the hearing. “But we will never let that be enough. You will be back in front of us, and we will ask the same questions again.”
