Lawmakers want answers about slow VA reimbursements that are hurting veterans’ credit
August 08, 2017
A bipartisan group of 40 House lawmakers wrote a letter to Department of Veterans Affairs (VA) Secretary David Shulkin. They criticized the VA for slow reimbursements to private medical providers, which are damaging the credit reports of veterans who use the Veterans Choice Program.
The Veterans Choice Program allows eligible veterans to seek health care outside the VA system. Thousands of former service members who participate in the program have complained about being subject to debt collection proceedings when their medical bills are not paid in a timely manner. According to the letter, the VA’s delayed payment practices have led to veterans having negative information included in their credit reports “through no fault of their own.”
“The long-term damage to credit scores could be severe,” the letter said. “At a minimum, this increases the costs of credit and could make it more difficult, if not impossible, for veterans to secure credit for life essentials such as a car or housing.”
As of May 18, the VA has received 57,228 calls from veterans complaining about adverse credit reporting. The department has been grappling with challenges related to payments to private-sector doctors since the Veterans Choice Program was established in 2014. VA officials said the rush to set up the program in around 90 days was partly to blame.
Earlier this year, Congress passed a law that makes the VA the primary payer under the Veterans Choice Program instead of third-party contractors. However, lawmakers wrote in their letter that they “remain concerned” about continued delayed payments. They raised questions about what action the VA is taking to prevent the negative credit reporting.