GAO: VA cuts improper payment rate from 78% to 2.4%, a 98% reduction in five years

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 released July 22, 2026. The improper payment rate dropped from 78% to 2.4% despite total program outlays rising from $9.5 billion to $25 billion. The GAO attributed the reduction to VA efforts addressing system and policy issues like payment processing errors and eligibility problems. However, the GAO found the VA has not conducted a comprehensive fraud-risk assessment, leaving the program vulnerable. The VA concurred with recommendations to create a fraud-risk framework, with completion targeted by March 2028. The report also noted CMS improper payments for Medicare Advantage plans rose to $23.7 billion in 2025.