VA Acknowledges Long Delays in Processing Millions of Dollars in Refunds Owed to Veterans but Fails to Provide Plan to Fix
January 15, 2025
OSC released a summary of a review conducted by the VA at OSC’s request finding a significant backlog of charges that have not been processed for potential refunds owed to veterans.
Special Counsel criticizes agency response, demands more answers
The U.S. Office of Special Counsel (OSC) today released a high-level summary of a review conducted by the U.S. Department of Veterans Affairs (VA) at OSC's request. The VA's report found a significant “backlog" of charges that have not been processed for potential refunds owed to veterans.
The whistleblower explained that veterans' medical copayment charges are written off, or cancelled, by the VA for multiple reasons, most commonly a change in a veteran's service-connected condition or a charge billed in error. Federal law requires that the VA “will refund" the amount of any copayment incorrectly charged.
In its referral, OSC noted that, according to the whistleblower, an internal VA audit team estimated that from 2012 through 2020, there were approximately $110 million in potential refunds owed to more than 970,000 veterans. The whistleblower further alleged there were no agency policies, procedures, or plans to address the backlog.
Following a review of more than six months, the agency's report merely confirmed the existence of the backlog and acknowledged the need for a national strategy to address it. The report said that the VA's existing strategy is to stay current with refund requests and work the backlog as time allows. It further said that the problem has existed for at least five years and is “a national issue," attributing the delay, in part, to staffing constraints. VA management was briefed on the issue in August 2020 but concluded that the briefing was simply “informational."
“Saying you should develop a plan is not a plan," said Special Counsel Hampton Dellinger. “I am very concerned with the lack of specificity in the VA's findings and the absence of any real actions to timely reimburse veterans for money they're owed. Federal law requires agencies to inform my office 'of what action has been or is being taken and when such action will be completed,' and I believe the VA's report fails in that regard. For these reasons, I am working with the whistleblower to resubmit the allegations under the most formal process allowed by law. And I am asking the Secretary to keep me appraised of progress, including a timeline for completion, in developing and then – most importantly – belatedly implementing a repayment plan."