Review of Accuracy of Claims Processors’ Disability Evaluation Decisions for Painful Scars
VA Office of Inspector General · Report 25-03303-266 · October 21, 2026 · Office of Audits and Evaluations
What the OIG found
OIG reviewed whether the Veterans Benefits Administration accurately decided disability claims involving service-connected painful scars, sampling two sets of decisions completed between June 1, 2024, and May 31, 2025: those granting service connection and those increasing ratings for previously service-connected painful scars. From those samples, OIG estimated that 38 percent of the decisions, about 17,900 cases, contained at least one error, and that at least 920 errors caused roughly $5.6 million in overpayments that will keep accruing until corrected. The errors stemmed from claims processors not consistently following the regulatory requirements for deciding whether a scar is painful, including relying on subjective reports of pain without objective examination evidence; from VBA systems not consistently flagging pyramiding, where the same disability manifestations are evaluated under multiple diagnostic codes; and from previously service-connected scars that later became painful not receiving a separate evaluation under the painful scar diagnostic code. A follow-up sample of 30 decisions from January 2026 showed a similar 43 percent error rate. OIG made three recommendations to improve decision accuracy under the VA Schedule for Rating Disabilities, and VBA concurred with all three.
Who it concerns
Veterans Benefits Administration (VBA) disability evaluation decisions for service-connected painful scars
Why it matters to a family
For a veteran’s family, rating accuracy cuts both ways: some families received overpayments that can turn into VA debts, while other veterans whose scars became painful never got the separate evaluation, and the compensation they were owed.
The official report
Summary ours; the report is the OIG’s. Read it at vaoig.gov →