VA Medical Exam System Faces Congressional Scrutiny over Potential False Claims Act Violations

Congress Raises Alarm Over VA Medical Examination System Failures

A contentious Congressional oversight hearing this week revealed deep systemic failures in the Department of Veterans Affairs’ contracted medical examination process, with lawmakers suggesting potential violations of the False Claims Act by exam providers.

At the center of the controversy is evidence that contracted medical examiners frequently conduct disability evaluations without access to veterans’ complete claims files—directly contradicting assertions made by VA leadership. These incomplete reviews have resulted in flawed Disability Benefits Questionnaires (DBQs), incorrect claim denials, and millions in questionable incentive payments to contractors.

“This is a massive program… and we’re hearing way too many stories of how it’s not working for our veterans,” stated Ranking Member Mark Greenman McGarvey during the hearing. He highlighted a particularly troubling Government Accountability Office (GAO) finding that $2.3 million in incorrect incentive payments were made to contractors despite poor performance.

Representative Morgan McGarvey questioned the ethical framework of the current system, noting that “If the contracted provider gets the paperwork right and they get it in, they’ll get their incentive pay… Is this the standard of care that our veterans should experience or that we want to incentivize?”

The hearing took a shocking turn when McGarvey described actual cases where veterans—including those seeking evaluations for military sexual trauma—were directed to hotel rooms for their medical examinations. Rather than expressing surprise, the room responded with grim acknowledgment of this practice, underscoring concerns about unprofessional environments leading to substandard exams.

Elizabeth Curta from the GAO delivered particularly damning testimony, revealing that “VBA overpaid almost $2,300,000 in financial incentives… and none of the five recommendations for improvement have been fully implemented.” The GAO investigation also found that examiners themselves feel silenced when attempting to provide feedback about systemic problems.

“Five of the six examiners we interviewed said they wanted the opportunity to provide feedback directly… All six said unaddressed concerns made it harder to provide high-quality exams,” Curta testified.

A critical moment occurred when Representative Dr. Rich McCormick questioned Mary Glenn, Deputy Director of the VA’s Medical Disability Examination Office, about whether examiners receive complete veteran files. Glenn insisted that “If it’s in the veteran’s claim folder, everything is sent over”—a claim directly contradicting both GAO findings and examiner testimonies.

Congress appears increasingly concerned that these failures might constitute more than administrative shortcomings. When examiners perform evaluations without complete claims files, in inappropriate settings, using inconsistent guidance, or without proper training—yet contractors still receive payment—lawmakers suggested this could potentially violate the False Claims Act.

The GAO report highlighted additional oversight gaps, noting that contractors often operate without direct supervision, creating an environment where abuse could flourish. This combination of insufficient oversight and financial incentives that reward speed over accuracy has created what multiple representatives described as a “systemic breakdown.”

Veterans advocacy groups are now encouraging those who have experienced problematic examinations to file Congressional inquiries, believing this documentation will provide essential evidence for system-wide reform. These inquiries can highlight specific instances of missing evidence, exam errors, improper examiner conduct, and contractor failures.

The hearing represents a significant escalation in Congressional scrutiny of the VA’s disability examination process, with lawmakers from both parties expressing frustration over longstanding problems that directly impact veterans seeking disability benefits.

As Congress continues its investigation, the VA faces mounting pressure to implement comprehensive reforms to ensure veterans receive thorough, professional medical evaluations that accurately reflect their service-connected conditions—an essential step in providing them the benefits they have earned through their service.