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Accuracy of Claims Decisions Involving Conditions of the Spine

Report Information

Issue Date
Report Number
18-05663-189
VA Office
Veterans Benefits Administration (VBA)
Report Author
Office of Audits and Evaluations
Report Type
Review
Recommendations
5
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary
Spinal conditions account for two of VA’s top 10 service-connected disabilities, totaling some 1.5 million cases as of September 30, 2018. The VA Office of Inspector General (OIG) conducted this review after determining disability claims related to conditions of the spine have a higher risk of processing errors, which can result in veterans not receiving the proper benefits. The OIG estimated the Veterans Benefits Administration (VBA) incorrectly processed more than half of the 62,500 claims decided in the first six months of 2018, accounting for at least $5.9 million in either over- or underpayments. Processing errors included improper evaluations, missed secondary conditions, and evaluations based on inadequate exams. The OIG found these incorrectly decided claims resulted from VBA’s inadequate process for ensuring accurate and complete evaluation. VBA’s primary means of evaluating disability contains minimal guidance and a procedure manual is too subjective in key areas, which can lead to an inconsistent evaluation for related conditions stemming from the primary disability. During the review, VBA acknowledged issues the OIG identified were problematic and that it has taken steps to update some of its tools and guidance. VBA has also initiated mandatory training to help employees who approve and review claims better understand medical opinions. The OIG recommended the under secretary for benefits instruct VBA to update its disability rating process to establish objective criteria for spine-related conditions and improve VBA’s internal controls to help ensure the accuracy and consistency of claims decisions for conditions of the spine.

Open Recommendation Image, SquareOpenClosed and Implemented Recommendation Image, CheckmarkClosed-ImplementedNot Implemented Recommendation Image, X character'Closed-Not Implemented
No. 1
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
Implement a plan to conduct a focused analysis of claims processor compliance with the requirements set forth by recent court decisions regarding examiner opinions and formulate a plan to review and take corrective action on affected claims if deemed necessary based on the results of that review.
No. 2
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
Develop a plan to update the rating schedule to establish more objective criteria for each level of evaluation for peripheral nerves.
No. 3
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
Review all sections of the procedures manual related to peripheral nerve disability evaluations and develop a plan to make updates and clarifications where applicable.
No. 4
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
Review the disability benefits questionnaire forms for conditions of the spine and determine whether updates are needed to help ensure more accurate and consistent claims decisions.
No. 5
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
Update the Evaluation Builder tool to help users provide more accurate, comprehensive, and consistent information for claims decisions involving the spine and peripheral nerves.
Total Monetary Impact of All Recommendations
Open: $ 0.00
Closed: $ 64,800,000.00