Improving Outcomes for Disabled Veterans: Oversight of VA’s Medical Disability Examination Office

VA Budget and ModernizationHouse Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs · November 20, 2025 · 119th Congress
The House Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs held this oversight hearing to examine the Medical Disability Examination Office (MDEO), which manages contractors performing over 90% of veterans' disability exams nationwide. Begins at ▶ 0:24:56
Transcript
Highlights

Title

Oversight of VA's Contracted Disability Exam Office (MDEO)

Purpose

The House Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs held this oversight hearing to examine the Medical Disability Examination Office (MDEO), which manages contractors performing over 90% of veterans' disability exams nationwide. The hearing followed GAO reports finding that MDEO miscalculated and overpaid contractor incentives by millions of dollars and fell behind on required quality reviews, and members raised additional concerns about exam scheduling, accessibility, and location problems reported by veterans. Begins at▶ 0:24:56

Who spoke

• Chairman Latrell▶ 0:24:48: Opened by outlining that over 90% of exams are done through four major contractors under $13 billion in multi-year contracts▶ 0:26:20, and detailed GAO findings that MDEO overpaid vendors and missed special focus reviews for TBI, MST, and Gulf War illness cases▶ 0:27:13▶ 0:28:34; later pressed Ms. Glenn on how the $2.3 million overpayment occurred and whether internal checks now prevent recurrence▶ 0:45:04▶ 0:48:06.

• Ranking Member McGarvey (D-KY)▶ 0:30:40: Said constituent stories include exams scheduled without veterans' knowledge, mismatched specialties, and rushed mental health exams▶ 0:31:59; noted only $500,000 in penalties were imposed versus $2.3 million overpaid▶ 0:32:57, and pressed on canceled DOGE-related contracts for financial audits and veteran feedback surveys▶ 0:55:05.

• Ms. Elizabeth Curda, GAO▶ 0:34:52: Testified GAO made five recommendations after finding breakdowns in corrective-action follow-up, incorrect incentive payments, and no direct examiner feedback channel▶ 0:37:53; said none of the five recommendations were fully implemented as of the hearing▶ 0:38:14, and that five of six examiners interviewed wanted a direct feedback channel▶ 0:39:42.

• Ms. Mary Glenn, MDEO Deputy Executive Director▶ 0:40:30: Reported VBA completed 3.3 million exam requests and 9 million DBQs in FY2025, with average completion time improved to 26.4 days from 35.7▶ 0:41:42; claimed MDEO has recouped overpayments and implemented all GAO recommendations, requesting closure of the findings▶ 0:44:20; later acknowledged the overpayment process was manual with no standardized checks and that staff involved are no longer employed at VA▶ 0:50:12▶ 1:21:57.

• Ms. Tara Flores, VA Acquisition Service▶ 0:34:21: Introduced as joining Ms. Glenn to address contracting questions; present throughout for acquisition-related matters but did not testify at length in the transcript.

• Rep. (General) [Subcommittee member]▶ 0:56:53: Asked whether missing medical evidence reaches examiners in organized form, citing veteran/VSO reports of disorganized case files▶ 0:57:45; pressed on whether file transfers to vendors are 100% verified or randomly checked▶ 1:00:04.

• Rep. Abser▶ 1:01:56: Asked how MDEO is soliciting examiner feedback▶ 1:02:21 and raised a New Hampshire veteran's case of a canceled exam due to VA failing to send medical records, questioning rescheduling difficulty and geographic coverage▶ 1:04:21▶ 1:05:00.

• Rep. Morrison▶ 1:07:08: Asked about technology tools to reduce in-person exams▶ 1:07:37; raised VFW's proposal for multi-year contracting versus the current model▶ 1:08:36 and an IG finding that 29 of 100 VHA medical opinions were issued before examiners completed PACT Act training▶ 1:09:54.

• Chairman Latrell (second round)▶ 1:11:05: Pressed on total penalties collected in FY24 and whether penalties matched overpayment amounts▶ 1:11:05; questioned whether examiner portal responses risk retribution from vendors▶ 1:12:56.

• Rep. [member questioning on PVA accessibility]▶ 1:14:08: Cited Paralyzed Veterans of America findings that over half of 135 exam facilities visited had accessibility barriers▶ 1:15:02; asked about site visits, of which MDEO conducted 159 in FY25▶ 1:15:37, and pressed on reports of exams held in hotel rooms▶ 1:16:11.

• Rep. Sil▶ 1:20:30: Calculated that a 3% incentive cap on $2.3 million in overpayments implies roughly $76 million in underlying invoices▶ 1:21:21; asked how many staff were reprimanded and whether vendors were changed▶ 1:21:57.

• Committee member with neuroscience background▶ 1:23:10: Challenged extending special focus reviews for traumatic brain injury from two to three years, arguing medical advances mean delayed reviews could miss debilitating findings▶ 1:24:38; got Ms. Curda and Ms. Glenn to agree the change is "worse" for veterans▶ 1:28:00▶ 1:28:37.

• Rep. [member following up on examiner trends]▶ 1:28:39: Noted GAO found examiners no longer elevate concerns to vendors because vendors don't listen, questioning how MDEO establishes trends without that feedback▶ 1:29:06; noted the new examiner portal has only about two months of data▶ 1:30:11.

• Rep. [closing member, small-business comparison]▶ 1:30:18: Compared the ~20% incentive-payment error rate to a restaurant sending out wrong orders, calling it unsustainable▶ 1:30:41; proposed a roundtable with contracted vendor executives to hear directly about their controls▶ 1:31:06, citing a hypothetical military sexual trauma exam conducted in a hotel room▶ 1:32:13.

Key moments

• GAO found MDEO overpaid contractors nearly $2.3 million in financial incentives in the first quarter of FY2024 due to a manual process with no standardized accuracy checks▶ 0:39:12▶ 0:39:29.

• Ranking Member McGarvey noted only about $500,000 in penalties were imposed on contractors who failed quality standards, versus the $2.3 million overpaid▶ 0:32:57.

• Ms. Glenn confirmed the staff involved in the overpayment error are no longer employed at VA, but MDEO has not changed vendors as a result▶ 1:21:57▶ 1:22:16.

• Rep. Sil's back-of-envelope math, based on a 3% incentive cap, put the total invoice value of the two erroneous contracts at approximately $76 million▶ 1:21:21▶ 1:21:34.

• GAO's Ms. Curda testified that VBA is shifting special focus reviews for TBI, MST, and Gulf War illness cases from a two-year to a three-year schedule due to staffing reductions, and stated under direct questioning that this change is "worse" for veterans▶ 1:18:41▶ 1:28:37.

• Paralyzed Veterans of America found more than half of 135 exam facilities visited had accessibility barriers; MDEO said it conducted 159 surprise site visits in FY25▶ 1:15:02▶ 1:15:37.

• GAO reported five of six interviewed examiners wanted a direct feedback channel to VBA, and all six said unaddressed quality concerns made it harder to perform accurate exams▶ 0:39:42.

• Ms. Glenn testified MDEO's new examiner feedback portal went live at the end of September 2025 and has already received compliments and suggestions, though only about two months of data exist▶ 1:02:57▶ 1:30:11.

• A member cited an IG report finding 29 of 100 VHA medical opinions were provided before examiners completed PACT Act training, though Ms. Glenn said only three VBA contract examiners were found non-compliant▶ 1:09:54▶ 1:10:18.

• Ms. Glenn stated VBA's contract permits exam travel of up to 50 miles for general exams and 100 miles for specialty exams, using mobile medical units to reach rural veterans▶ 1:06:08▶ 1:06:33.

Metadata

CommitteeHouse Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs
Chamber / CongressHouse · 119th Congress
DateNovember 20, 2025
TypeHearing
Witnesses
Ms. Elizabeth Curda — Director of Education, Workforce, and Income Security, Government Accountability Office
Ms. Mary Glenn — Deputy Executive Director, Medical Disability Examination Office
Ms. Tara Flores — Director, Acquisition Service, Office of Acquisition, Logistics and Construction, U.S. Department of Veterans Affairs
Videoyoutube
Transcript294 caption blocks · 11,420 words · 1:35:46 runtime
EventCongress.gov 118660