Recent findings from the VA Office of Inspector General have exposed significant errors in the automated processing of Dependency and Indemnity Compensation (DIC) claims, impacting nearly all reviewed cases. The investigation highlights critical failures in the system designed to manage these benefits for survivors.
According to Claire Hillan Sosa, a Senior Disability Attorney with Deuterman Law Group, “VA OIG, the Office of Inspector General, included a review of 8,100 cases of these automated DIC decisions and found that in 8,000 of them there were errors. So, this is essentially every case.” These claims were marred by legal and procedural mistakes, resulting in incorrect notifications, missing evidence summaries, and substantial financial discrepancies.
Hillan Sosa explained that the automated system, which employs a mix of AI and rule-based processes, has been in use for several years. It played a role in making decisions on DIC claims, often resulting in flawed determinations. Related content: Thousands of veterans who had their disability appeals abruptly closed due to computer errors may see back pay … eventually
The OIG reported that due to issues in predefined system rules, the software mistakenly approved over $2.7 million in overpayments to individuals without adequate verification. One highlighted case involved an automatic payment of over $22,000 based on incorrect medical evidence linking a veteran’s death to a service-connected condition.
Hillan Sosa noted a specific instance where the system incorrectly attributed a veteran’s death to hypertension, whereas the actual cause was pulmonary hypertension, a distinct condition. She emphasized the importance of transparency, stating, “There’s a whole checklist under the law of the things that VA decisions have to include.” However, 98% of award letters failed to meet these legal requirements.
While much attention is on the overpayments, Hillan Sosa warned of the risks for eligible claims being wrongly denied or underpaid. She advised that individuals denied DIC should check if their decision lacked legally required notices, as they might still have a pending claim. “So, you could, in one of those instances, ask VA to make that decision now with the proper notice … and if it’s denied, then you still have the opportunity to appeal,” she said.
For those who received benefits in error, urgent action is required. Hillan Sosa cautioned, “VA may attempt to begin proposing to sever DIC, so taking away the benefits that they granted for these surviving family members of veterans.” She stressed the importance of understanding and exercising due process rights promptly.
Although it is unlikely that the government will reclaim overpaid funds, Hillan Sosa advised individuals affected by these errors to seek professional assistance. “If you were denied DIC in the past five years or so, then I would recommend seeking help from a VSO or an accredited attorney or agent representative,” she said.
In a broader review, federal authorities found underpayment rates as high as 16% in automated pension systems, particularly impacting burial and transportation benefits due to early rejections by the system.
