Whistleblower Disclosure Leads to Improvements in VA Refund Process, Benefiting Hundreds of Thousands of Veterans

May 27, 2026

WASHINGTON, D.C./May 27, 2026 – Today, the U.S. Office of Special Counsel (OSC) notified the President and Congress of the U.S. Department of Veterans Affairs’ (VA) investigation into whistleblower allegations that the agency failed to address a backlog of potential refunds owed to veterans. The investigation confirmed significant delays in refunding veterans for incorrectly charged copayments.

The whistleblower, a former Manager with VA’s Office of Finance, Revenue Operations, reported that VA Consolidated Patient Account Centers (CPAC) were failing to process timely refunds for veterans who had paid copayments for healthcare later determined to be service-related and covered by VA. The whistleblower alleged that the VA had discovered but failed to act on a backlog totaling more than $110 million in potential refunds owed to more than 970,000 veterans for copayment charges cancelled between 2012 and 2020.

The VA’s July 2025 report, followed by its May 2026 update in response to OSC’s request for the status of the backlog, detailed significant progress. The VA reported that 98 percent of the backlog had been reviewed and would be completed by the end of the month. As a result of the expedited review, nearly $20 million was refunded to more than 200,000 veterans, averaging $93.53 per payment.

“Thanks to the whistleblower’s persistence in bringing these concerns to light, the VA has taken meaningful action to address a longstanding problem affecting hundreds of thousands of veterans,” said Chief Counsel Charles Baldis. “We appreciate the VA’s expedited review and its commitment to issuing overdue funds more quickly,” added Baldis.

OSC encourages the VA to recognize the whistleblower’s significant contribution to improving CPAC operations and to consider awarding a monetary reward consistent with the agency’s authority.