GAO: VA cuts improper payment rate from 78% to 2.4%, slashing private care overpayments by 98% since 2020

Published Jul 22, 08:24 PM UTC

The Department of Veterans Affairs has reduced improper payments to private companies providing community care for veterans by 98% over five years, from $7.5 billion in 2020 to $608 million in 2025, according to a Government Accountability Office report. Despite total program outlays rising from $9.5 billion to $25 billion, the improper payment rate dropped from 78% to 2.4%. The GAO noted that improper payments stem from outdated claims, incorrect reimbursement rates, or bills exceeding authorized care, and sometimes involve fraud. Recent cases include a home health company submitting $100,000 in fraudulent claims and a provider paying $3.7 million to settle fraud charges. The VA has implemented corrective actions but has not conducted a comprehensive fraud-risk assessment, leaving the program vulnerable. VA officials agreed to create a fraud-risk framework by March 2028 during the Veterans Health Administration reorganization. The GAO also found that improper payments by CMS for Medicare Advantage plans rose to $23.7 billion in 2025.