Moran Heads Hearing on Veteran Benefits Fraud

By Anna Kaminski, Kansas Reflector

TOPEKA — U.S. Sen. Jerry Moran, R-Kansas, wants to get to the bottom of recent reports of fraud by veterans claiming benefits.

“We have an obligation to the men and women who have injuries or illnesses connected with their service in uniform to make certain they are provided the tools and resources they need to succeed in life after the military,” Moran said, convening a hearing Wednesday in Washington. “Our goal today is to examine the facts.” 

Moran, chairman of the Senate Veterans Affairs Committee, called the hearing in response to a Washington Post investigation that showed the U.S. Department of Veterans Affairs has antiquated policies that sometimes provided outsized benefits for veterans with minor conditions. It also found cases where veterans lied about their conditions outright.

The investigation found, for example, that the Veterans Benefits Administration typically pays veterans with sleep apnea more than a veteran who had a leg amputated below the knee. Based on documents, videos and interviews, the pair of articles detailed instances of veterans falsifying disabilities to earn higher benefits.

But some lawmakers and officials at the hearing disputed the conclusions of the investigation. 

“There is no massive fraud going on,” said Cheryl Mason, the inspector general for Veterans Affairs.

Jeremy Villanueva, associate legislative director for Paralyzed Veterans of America, said it is “disgraceful when disabled veterans are portrayed as fraudsters and cheats.”

U.S. Sen. Tammy Duckworth, D-Illinois, said the article painted veterans as “dishonest fraudsters,” “cheaters” and “moochers.”

She said no one denied the reality that there are a small number of fraudsters. She said investigative resources should be increased if the goal is to strengthen deterrence and prosecution.

“The mistake we must avoid is allowing a minority of criminals who dictate the redesign of the VA disability benefits system into a bureaucratic black box that is more frustrating and less fair and will leave more veterans waiting and dying waiting to get benefits they’ve earned,” said Duckworth, who is an Army National Guard veteran.

Moran said the articles left the impression that veterans are responsible for widespread fraud.

“The cases of fraud highlighted in these articles do not reflect the reality of who veterans are, the vast majority of the veteran population or the values veterans embody,” Moran said.

The attention the stories received provided the committee with the opportunity to discuss the efficacy of the VA disability claims process, Moran said.

“Is the system ensuring timely, accurate and fair outcomes?” he asked. “Is it empowering veterans to thrive or inadvertently creating barriers to their success and opportunities after service?”

He said he sought to bring different points of view to the committee, inviting six people whose jobs and lives are intertwined with the Veterans Administration. Moran said he had faith in the committee’s ability to hear from veterans and ensure they receive the benefits they are entitled to.

Of Kansas’ 182,000 veterans, more than 83,000 are enrolled in the VA health care system and more than 47,500 receive disability benefits, according to department data from fiscal year 2023.

The Post wasn’t subtle in its examples of fraud, said U.S. Sen. Jim Banks, R-Indiana, citing a veteran who pretended to be blind for almost three decades and a competitive bodybuilder who faked trouble walking and wore a diaper. Banks, who is a Navy veteran, asked Daniel Gade, a retired U.S. Army Colonel and a source in a Post article, how prevalent outright disability compensation fraud really is.

It is rare, Gade said.

“A bigger problem is the problem of lax oversight and easily exaggerated conditions and no follow-up,” said Gade.

Mason agreed that fraud is rare, acknowledging bad actors exist, but they are few compared to the 6.9 million American veterans who receive benefits.

Despite the rarity of fraud and steps to improve the veterans’ disability benefits program, the VA has failed to modernize, said Elizabeth Curda, the director of education, workforce and income security issues for the U.S. Government Accountability Office.

It is a large, decentralized organization and change often faces strong headwinds, Curda said. The VA relies on outdated ratings to determine disability levels, and it is 10 years behind on its goal to bring policies and procedures up to date, she said.

U.S. Sen. Richard Blumenthal, D-Connecticut, repeatedly pointed to substantial cuts to the VA workforce. He said the system has been dismantled through “reckless policies” that have pushed civil servants to the brink of their abilities. He cited Trump administration policies such as “arbitrary” contract cancellations, return to office mandates and proposed lay-offs.

There are simply not enough people, Blumenthal said.

“The result has been a demoralized VBA workforce who is consistently pushed to sacrifice quality for the sake of quantity,” he said.