In addition to receiving disability benefits from VA, veterans may receive  disability benefits from the Department of Defense (DOD). VA’s Disability Claims and Appeals Processing Has Improved in Some Areas and Worsened in Others

Over the past 10 fiscal years, the total number of compensation claims  decisions completed annually by VA and the average days compensation  claims were pending improved, while the total number of claims pending  at year end and the average days to complete a claim worsened. From  fiscal year 1999 to fiscal year 2008, VA increased the number of initial  compensation claims processed annually by nearly 60 percent from about  458,000 to about 729,000 (see fig. 1). 2). From the end of  fiscal year 1999 to the end of fiscal year 2008, pending claims increased by  more than 65 percent from about 207,000 to about 343,000 (see fig. Several factors have contributed to the trends in VA’s disability workloads. Another factor impacting VA’s claims workloads—particularly the average  time to complete a claim—is the complexity of claims received. In addition, according to VA officials,  veterans cited more disabilities in their claims in recent years than in the  past, and these claims can take longer to complete because each disability  must be evaluated separately. For example, over the past 6 fiscal years,  the number of appeals resolved increased about 22 percent from over  72,000 in fiscal year 2003 to almost 88,000 in fiscal year 2008 (see fig. VA Continues to Take Steps to Improve Claims Processing

VA has taken several steps to improve claims processing, including  increasing claims processing staff, redistributing certain workloads,  implementing a joint pilot with DOD to perform disability evaluations, and  developing a number of other initiatives to expedite benefits to veterans. VA expects these efforts to yield improvements, but their effects are not  yet known and we have identified challenges with some of these efforts. VA expects its productivity to decline further  before it improves, in part because of the challenge of training and  integrating new staff. Since 2001, VA has created 15  resource centers that are staffed exclusively to process claims or appeals  from backlogged regional offices at distinct phases in the claims process. Although  such efforts could improve the timeliness as well as the consistency of its  decisions, VA has not collected data to evaluate the effect of its workload  redistribution efforts. In the pilot, VA completes disability  ratings for servicemembers found unfit for duty. VA has also begun other initiatives such as testing other ways to process  claims and leveraging technology. We are in the  process of reviewing these initiatives as part of our ongoing study. In conclusion, workload data indicate that VA has made progress in some  areas of its disability claims and appeals process, but it continues to  experience challenges in reducing the time it takes to process claims and  appeals and in reducing the number of claims awaiting decisions.
Why GAO Did This Study

The Senate Veterans' Affairs Committee asked GAO to present its preliminary findings on the Department of Veterans Affairs' (VA) disability claims process. This statement discusses (1) the trends in VA compensation claims and appeals, and (2) the steps VA is taking to improve disability claims processing. This testimony is based on ongoing work. GAO's findings are based largely on VA performance data and information obtained from VA documents and through interviews with VA officials. This testimony is also based on past GAO work on this subject, updated as appropriate to reflect VA's current workload and initiatives.

What GAO Found

Over the past several years, VA disability claims workloads at both the initial and appellate levels have improved in some areas and worsened in others. For example, the number of disability claims VA completes annually at the initial level increased about 60 percent--from about 458,000 in fiscal year 1999 to about 729,000 in fiscal year 2008. However, during this same period, the number of claims pending at year-end increased 65 percent to about 343,000. Several factors affect these and other disability claims workloads, including increases in disability claims received, growing complexity of claims, court decisions and changes in regulation. Disability claims workloads at the appellate level have also improved in some areas and worsened in others. For example, over the past several years, the number of appeals resolved increased 22 percent, from more than 72,000 cases in fiscal year 2003 to almost 88,000 cases in fiscal year 2008. However, it took on average 96 days longer in fiscal year 2008 to resolve appeals than in fiscal year 2003. One factor that affects workloads at the appellate level is the submission of new evidence or claims that must be evaluated. VA has taken several steps to improve claims processing, but the effect of some of these actions is not yet known. For example, VA increased claims processing staff about 58 percent from fiscal years 2005 to 2009, which has helped to increase the total number of decisions VA issues annually. However, VA expects individual staff productivity to decline in the short-term in part because of the challenge of training and integrating new staff. In addition, VA has established 15 resource centers to which it redistributes claims and appeals for processing from backlogged regional offices. Although VA has not collected data to evaluate the effect of its workload redistribution efforts, these efforts may ultimately increase the timeliness and consistency of VA's decisions. VA is also implementing a pilot with the Department of Defense (DOD) to perform joint disability evaluations that has the potential to streamline the disability process for prospective veterans. Finally, VA has begun other initiatives, which we are in the process of reviewing, such as targeting certain claims for fast-track processing and leveraging technology.