GAO: VA slashes improper payment rate to 2.4% from 78%

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 The GAO noted improper payments stem from outdated claims, incorrect reimbursement rates, and billing errors, with some cases involving fraud. Examples include a home health company submitting $100,000 in fraudulent claims and a provider paying $3.7 million to settle fraud charges. The VA implemented corrective actions but has not conducted a comprehensive fraud-risk assessment. The GAO recommended creating a fraud-risk framework, which VA officials agreed to, with completion targeted by March 2028. In contrast, the GAO found improper payments by CMS for Medicare Advantage plans rose to $23.7 billion in 2025.