Examining VA Efforts to Decrease Delays in Veterans’ Disability Compensation Claims

VA Budget and ModernizationHouse Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs · April 9, 2025 · 119th Congress
The House Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs held this hearing to examine VA efforts to reduce delays in disability compensation claims caused by "over development" — unnecessary exams and record requests — and to review progress on the VA's over development reduction task force and the National Work Queue system. Begins at ▶ 0:00:00
Transcript
Highlights

Title

VA disability claims processing: over-development, the National Work Queue, and union rights

Purpose

The House Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs held this hearing to examine VA efforts to reduce delays in disability compensation claims caused by "over development" — unnecessary exams and record requests — and to review progress on the VA's over development reduction task force and the National Work Queue system. The hearing also addressed the administration's move to end collective bargaining agreements at VA and its effect on VBA employees and claims processing. Begins at▶ 0:00:00

Who spoke

• Chairman Morgan Luttrell (R-TX)▶ 0:00:00: Opened by describing over development's costs, citing 2.4 million exams completed in FY2023 rising to 3.2 million in FY2024▶ 0:01:18, and an OIG finding of about $1.4 million spent on unnecessary exams from April–September 2023▶ 0:01:18; discussed HR 2137, the Review Every Veteran's Claims Act, aimed at fixing automatic denials for missed unnecessary exams▶ 0:00:48, and the National Work Queue's handling of repeated errors across regional offices▶ 0:03:09.

• Ranking Member Morgan McGarvey (D-KY)▶ 0:04:38: Criticized the administration's decision to end collective bargaining agreements with VA unions as harmful to employees and veterans▶ 0:06:56, described VBA employees as highly dedicated despite arbitrary metrics and inadequate training▶ 0:05:36, and urged the Secretary to seek an exemption from the executive order▶ 0:07:53.

• Kenneth Smith, Assistant Deputy Undersecretary for Field Operations, VBA▶ 0:08:23: Testified on enhancements to the exam scheduling assistant, saying tool usage rose 48% and exam-related errors dropped 7% in FY25▶ 0:11:06; described plans to build the tool into VBMS with real-time error checks▶ 0:12:07; stated current inventory is 918,000 veterans awaiting decisions, down almost 6% over the past year▶ 0:22:27, with roughly 10,000 new claims arriving daily and about 11,000 completed daily▶ 0:31:43; said VBA completed more than a million claims by February, a record, and is running 8.5% ahead of last year's pace, projecting 2.5 million claims completed this year▶ 0:30:41▶ 0:31:12.

• James Smith, Deputy Executive Director, Policy and Procedures, Compensation Service, VBA▶ 0:32:14: Discussed the over development reduction task force's completion of work at the end of July, more than 50 manual updates, and a shrunk training class size following field feedback▶ 0:32:39; described a four-phase training model (Kirkpatrick model) focused on data-driven updates▶ 0:33:02.

• Robert Orifici, Executive Director, Benefits and Memorial Services, VA Office of Information and Technology▶ 0:33:30: Described VA's use of AI and interactive tools to help claims processors avoid deferrals and order exams correctly the first time▶ 0:34:00.

• James "Jim" Swartz, President, AFGE Local 2823▶ 0:14:29: Recommended VA keep claims within a single regional office throughout processing to reduce repeated errors and improve efficiency▶ 0:15:31; proposed the National Work Queue automatically assign new work when processors run out▶ 0:16:57 and return claims to processors who previously worked them▶ 0:17:25; said unions cannot bargain over wages, promotions, appointments, or performance standards, and VA workers have never gone on strike because it's illegal▶ 0:25:39; identified training as the biggest impediment to frontline efficiency▶ 0:26:08; said VBA is not currently consulting frontline employees in developing new technology or training modules▶ 0:27:33.

• Chairman Luttrell questioning: pressed Smith and Swartz on the National Work Queue 2.0, first-touch efficiency, and why claims are shuffled across offices rather than kept local▶ 0:19:44; asked about the disbanding and effectiveness of the over development task force▶ 0:28:30; closed with remarks on VA's ongoing workload▶ 0:34:36.

• Ranking Member McGarvey questioning: asked Swartz a series of questions establishing legal limits on union bargaining and confirming no union role in current tech/training development▶ 0:24:38; asked Kenneth Smith the same questions about employee consultation, eliciting confirmation that management develops solutions before briefing the union▶ 0:27:33; entered into the record a letter from Rep. Takano, Chairman Luttrell, Sen. Blumenthal, and 126 other members opposing the end of collective bargaining agreements▶ 0:36:26.

Key moments

• Kenneth Smith reported 918,000 veterans currently awaiting decisions in the National Work Queue, down almost 6% over the past year▶ 0:22:27.

• VBA is completing roughly 11,000 claims per day against about 10,000 new claims arriving daily, and projects 2.5 million claims completed this fiscal year after a record month of over 1 million claims completed by February▶ 0:31:12▶ 0:31:43.

• Recent enhancements to the exam scheduling assistant increased tool usage by 48% and contributed to a 7% year-to-date reduction in over-development errors in FY25▶ 0:11:06.

• Swartz testified union members cannot collectively bargain for wages, promotions, appointments, or performance standards, and VA employees have never gone on strike because it is against the law — directly rebutting suggestions that unions obstruct management▶ 0:25:39.

• Both Kenneth Smith and Swartz confirmed VBA is not consulting frontline employees in developing new technology modules, though James Smith noted union members and field SMEs do help develop training content▶ 0:27:33▶ 0:28:00.

• McGarvey cited an OPM email describing federal workers as "low productivity" as false and harmful to VBA morale▶ 0:05:36.

• Swartz recommended VA keep claims within a single regional office for their duration and return claims to the original processor who erred, so mistakes are learned from rather than repeated across offices▶ 0:15:31▶ 0:17:25.

• The over development reduction task force completed its work at the end of July, making more than 50 manual policy updates and enhancing the exam scheduling assistant▶ 0:28:30▶ 0:29:00.

• McGarvey entered a letter to Secretary Collins, signed by 126+ members of Congress including Rep. Takano and Sen. Blumenthal, urging a waiver from the executive order ending collective bargaining rights▶ 0:36:26.

• Luttrell noted VA pays contracted exam vendors for nearly all exams performed, even unnecessary ones, driving government waste tied to over development▶ 0:00:48.

Metadata

CommitteeHouse Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs
Chamber / CongressHouse · 119th Congress
DateApril 9, 2025
TypeHearing
Witnesses
Mr. Robert J. Orifici — Executive Director Benefits and Memorial Services, U.S. Department of Veterans Affairs, Office of Information and Technology
Mr. James "Jim" R. Swartz — President, AFGE Local 2823, American Federation of Government Employees
Mr. James W. Smith — Deputy Executive Director Policy and Procedures Compensation Service, U.S. Department of Veterans Affairs, Veterans Benefits Administration
Mr. Kenneth Smith — Assistant Deputy Undersecretary Field Operations and Acting Executive Director Education Services, U.S. Department of Veterans Affairs, Veterans Benefits Administration
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Transcript83 caption blocks · 6,127 words · 0:37:19 runtime
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