VA reduces improper payments for private health care by 98% since 2020

July 23, 2026 - 03:09

The Department of Veterans Affairs has dramatically reduced the amount of money it sends to private health care companies by mistake, cutting improper payments by 98% over the last five years. In 2020, the VA was losing billions of dollars to incorrect payments made to outside medical providers who treat veterans through community care programs. These errors included overpayments, duplicate payments, and payments for services that were never authorized or never delivered.

Officials say the improvement came from a combination of new technology, better training for staff, and tighter oversight of billing processes. The VA also implemented automated checks that catch errors before money is sent out. By 2025, the agency reported that improper payments had dropped to a fraction of what they were at the start of the decade.

The reduction is significant because improper payments have long been a problem across federal agencies, wasting taxpayer money and undermining trust in government programs. For the VA, the issue was especially sensitive given that the money was meant to fund care for veterans who often wait months for appointments at VA facilities. The agency now says it will continue to monitor payments closely and aim to keep error rates low. Veterans advocates have praised the progress but caution that the VA must remain vigilant to prevent the problem from returning.