The PACT Act (Promise to Address Comprehensive Toxics Act of 2022) is a landmark law that expands VA health care and benefits for veterans exposed to toxic substances, such as burn pits, Agent Orange, and radiation. Signed into law on August 10, 2022, it is considered one of the largest expansions of veteran benefits in U.S. history.

However a sampling of disability claims filed under the 2022 PACT Act found that roughly one-quarter listed incorrect start dates, resulting in improper payouts of about $6.8 million to some veterans and shortchanging an estimated 2,300 others, the Department of Veterans Affairs’ internal watchdog found.

In a report released this month, the Veterans Affairs Officer of Inspector General concluded that the legislation’s complexity, along with inadequate guidance from the Veterans Benefits Administration, led claims adjudicators to assign the wrong “effective date” to an estimated 26,000 claims, resulting in overpayment by the government in the first year of the legislation.

An estimated 2,300 additional claims had erroneous dates — including some that should have been made retroactive to a date before the law was signed, increasing compensation for veterans — but the watchdog agency said it “could not determine their monetary impact” on any affected veterans.

According to the VA, it has received 2.44 million PACT Act-related claims since the law went into effect. It has adjudicated 2.14 million claims and approved 1.59 million and, as of May 2024, had awarded $5.7 billion in related benefits to veterans or survivors. The VA OIG estimated that the VA will have made an estimated $20.4 million in improper payments in the first three years of the law, representing about 0.36% of payouts.

Some veterans who had diagnosed conditions covered by the PACT Act prior to its passage were eligible for retroactive benefits back to their date of diagnosis. After Aug. 10, 2023, any approvals under the act would have the date of application as a start date for benefits or, in the case of intentions filed before that date, to Aug. 10, 2022.

The complexity of determining the correct start date led the VA OIG to review claims for accuracy.

To figure out whether the VA was assigning effective dates correctly, the watchdog examined a statistical sampling of 100 claims filed in the law’s first year. Based on that analysis, the OIG estimated that the VBA assigned an incorrect effective date to roughly 26,100 of 131,000 claims, and it found it likely that an additional 2,300 should have been assigned a date that may have awarded veterans and their families more money.

“Errors that had the potential to affect veterans’ compensation benefits payments occurred when claims processors decided claims before taking all the necessary steps, such as gathering additional evidence, to determine whether a more advantageous effective date applied,” wrote Larry Reinkemeyer, the VA’s assistant inspector general for audits and evaluations, in the report. “As a result, some veterans did not receive their correct benefit payments.”

The OIG found that mistakes were made because claims processors were not adequately prepared to determine correct effective dates. The team added that the automated tools created to provide assistance in determining a date “were unreliable.” The team also noted that claims processors had made the VBA aware of the complexities, and the administration had taken steps to include updated training and conduct reviews to ensure accuracy.