WASHINGTON, DC – In an effort to eliminate the U.S. Department of Veterans Affairs (VA) claims backlog, the Senate Appropriations Committee today approved a 10-point plan backed by U.S. Senator Jack Reed (D-RI) to improve veterans claims processing in the spending bill for the fiscal year that begins October 1.

Reed, a member of the Appropriations Subcommittee on Military Construction, Veterans Affairs and Related Agencies (MilCon-VA), which oversees federal funding for veterans’ programs, was among the Senators voting 23-6 in favor of providing additional funding to reduce the claims backlog and strengthen training, oversight, and accountability at the VA.

“We need to help veterans cut through red tape and get an answer to their claims and appeals.  Today’s vote is a step in the right direction that provides a ten point action plan and the resources to help eliminate this backlog,” said Reed, who last month met with Secretary of Defense Chuck Hagel, Secretary of Veterans Affairs Eric K. Shinseki, Social Security Administration Acting Commissioner Carolyn Colvin, and others to discuss efforts to eliminate the VA claims backlog.  The meeting participants agreed that each agency would identify a single high-level person whose sole focus is fixing problems in this process and who reports directly to the Secretary or Administrator.

Over the last four years, the VA has processed more than 4.1 million claims, a figure unmatched in department history.  However, during that same time, VA offices took in 4.6 million claims.  Due to this increase in claims, as well as understaffing, technology issues, and other factors, as of mid-June, there were still over 550,000 claims pending in the backlog.

Senator Reed noted that according to VA data, Providence, which was the first Regional VA office in the nation to install a new Veterans Benefit Management System (VBMS), is one of the better-performing regional offices in the nation when it comes to processing claims.  VBMS, which has now been fielded at all 56 Regional Offices across the country, is designed to move the VA to paperless benefits processing; improve communication with our veterans; and track veterans throughout the system and help them cut down on paperwork and wait times. 

This week, the VA launched a new online application that gives veterans the option to file disability claims entirely online for faster decisions, and to reduce the backlog of claims.  The VA still accepts file paper claims form submissions, but urges veterans to file online.

The 10-point action plan to address the VA claims processing backlog includes:

  • An additional $20 million to upgrade computer servers and other hardware for the VBMS paperless claims system;
  • An additional $10 million for targeted overtime and training for claims processors as needed to increase production and help eliminate the claims backlog;
  • An additional $12.9 million for the Board of Veterans Appeals to hire additional personnel to expedite the processing of appeals. The VA estimates that in 2014, the Board’s inventory of appeals will reach 46,860 with an average processing time of 625 days;
  • Directs the VA to have the data management capability to receive all Department of Defense (DOD) health records in an electronic format by the end of calendar year 2013. DOD is implementing a program to have all service treatment records digitized and sent electronically to the VA by the end of 2014; 
  • Directs the VA to increase training of claims processors to achieve not only expedited production but also to ensure quality and accuracy to reduce claims appeals; 
  • Directs the VA to provide Quality Review Teams and spot audits at Regional Offices to assess the performance of the claims processing operations and flag any management or operational weaknesses;
  • Requires the VA to provide monthly reports to Congress on each Regional Office showing performance measures on claims, including the average days to complete a claim and error rates;
  • Requires the VA to submit quarterly reports showing what corrective action, if any, is taken against Regional Offices that perform poorly on claims processing;
  • Creates “Centers of Excellence” at selected Regional Offices for certain types of complex claims, such as claims for post-traumatic stress disorder (PTSD). With the VBMS paperless claims system, these centers could use their expertise to field claims from across the nation; and
  • Directs the DOD and VA Inspectors General to examine the processes and procedures involved in the transmission of medical and personnel records from DOD to VA to identify any problem areas and provide recommendations for improvements.

Now that it has been approved by the Appropriations Committee, the bill must be approved by the full Senate.