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Veterans PTSD Disability Compensation Payment Disputes

Author: Tom Berger
Published: 2008/01/01 - Updated: 2026/02/20
Publication Type: Reports & Proceedings
Category Topic: Disabled Veterans - Related Publications

Contents: Synopsis - Introduction - Main - Insights, Updates

Synopsis: This report, written by Tom Berger for The VVA Veteran - the official publication of Vietnam Veterans of America, Inc., an organization chartered by the U.S. Congress - examines the controversy surrounding state-by-state variations in veterans disability compensation payments for PTSD and the subsequent government reviews that followed. The article traces events from a 2004 Chicago Sun-Times investigation showing wide disparities between states, through a VA Office of Inspector General report that found differing outcomes in roughly 600 of 2,100 PTSD cases reviewed, to the VA Secretary's attempted review of 72,000 PTSD claims rated at 100 percent disability. The piece also documents a secret expert panel meeting in Philadelphia, Institute of Medicine contracts for PTSD diagnosis review, and VA internal data showing that 81 percent of answers given by regional office staff to callers were either completely or partly incorrect. The information is directly relevant to disabled veterans, military families, veterans service organizations, and disability advocates concerned with how PTSD claims are evaluated, verified, and compensated across the VA system - Disabled World (DW).

Topic Definition: Veterans Disability Compensation

Veterans disability compensation is a monthly tax-free payment administered by the U.S. Department of Veterans Affairs to veterans who became ill or were injured during active military service, or whose service aggravated an existing condition. Compensation amounts are determined by a disability rating ranging from 0 to 100 percent, assigned based on the severity of the condition and its impact on the veteran's ability to function. Post-traumatic stress disorder has been one of the most frequently claimed and most contested conditions within this system, with longstanding debates over how PTSD should be diagnosed, verified, and rated - particularly regarding stressor verification requirements, which have historically varied across VA regional offices and states. These inconsistencies have led to significant disparities in payment outcomes for veterans with similar conditions, prompting Inspector General investigations, congressional scrutiny, and ongoing calls for standardized evaluation criteria across the entire VA claims process.

Introduction

Veterans Disability Compensation Payments

In May 2005 the resultant OIG report noted that a review of 2,100 PTSD compensation cases found that in approximately 600 cases the compensation payment outcomes differed as a result of the stressor verification requirements varying from state to state.

It started in December 2004 when the Chicago Sun-Times ran a series of articles highlighting variations among states veterans disability compensation payments. The report showed that New Mexico had the highest compensation payments and Illinois the lowest. Rep. Lane Evans (D-Ill.) and other Illinois members of Congress sent a letter to VA Secretary Nicholson calling for a review. Subsequently, the Secretary asked for the Office of the Inspector General (OIG) to report on the differences.

Main Content

In May 2005 the resultant OIG report noted that a review of 2,100 PTSD compensation cases found that in approximately 600 cases the compensation payment outcomes differed as a result of the stressor verification requirements varying from state to state. Members of Congress used the results of this OIG report as the basis for claiming "fraud" among PTSD claims, especially those involving Vietnam veterans.

Secretary Nicholson then issued notice that there would be a review of 72,000 PTSD claims awarded at 100 percent disability from 1999-2005. But after pressure from veterans' groups (including VVA) and Sen. Patty Murray's (D-Wash.) amendment to halt the review passed the Senate 98-0, the VA Secretary announced cancellation of the review last November 10.

However, just six days later, another PTSD review was announced in a press release issued by Sen. Larry Craig (R-Idaho), the chair of the Senate Committee on Veterans' Affairs. This time neither the Secretary nor the VA announced the review. Sen. Craig's press release stated that the VHA had contracted with the Institute of Medicine (IOM) to conduct a new review of PTSD diagnosis, treatment, and compensation for approximately $1.4 million. According to a subsequent VA "fact sheet," the IOM will form two committees to conduct its review. One committee will "review the literature of various treatment modalities (including pharmacotherapy and psychotherapy)." This phase is expected to be completed in 12 months.

The other committee will review "the objective measures used in the diagnosis of PTSD and known risk factors for the development of PTSD," and "the utility and objectiveness of the criteria in the DSM-IV and will comment on the validity of current screening instruments and their productive capacity for accurate diagnoses." This phase is expected to be completed within six months.

Perhaps you're now thinking along the lines of a December article penned by Larry Scott in OpEdNews, who wrote that "they are trying to rewrite the book on PTSD." But there are more pieces to this puzzle.

In a front-page Washington Post article on December 27, reporter Shankar Vedantam noted that "PTSD experts were summoned to Philadelphia" for a secret two-day "expert panel" meeting in which they were asked to discuss "evidence regarding validity, reliability, and feasibility" of the department's PTSD assessment and treatment practices, according to an e-mail invitation obtained by the Post. The goal, the e-mail said, was "to improve clinical exams used to help determine benefit payments for veterans with Post-traumatic Stress Disorder."

The so-called experts quoted in this article included Sally Satel, the American Enterprise Institute's conservative voice on PTSD, along with Chris Frueh from the Charleston, South Carolina, VA Clinic, whose claim to fame includes trying to show fraud among veterans seeking treatment for PTSD, and VA spokesperson Scott Hogenson, the former executive director of the Conservative Communications Center. In this article, Satel makes the outrageous claim that "an underground network advises veterans where to go for the best chance of being declared disabled." VVA President John Rowan formally responded to the Post article on December 28, asking for the list of participants at the Philadelphia meeting. But as of this writing, VVA has not received a response to the request for the meeting's participant list.

But here's more:

David Oaks, Director of Mind-Freedom International, a mental health advocacy organization, wrote in a January 6 editorial that "the U.S. government is helping to fund a series of private conferences throughout the world with the American Psychiatric Association (APA) about the Future of Psychiatric Diagnosis." According to Oaks, "the Bush administration provided the APA with $1.1 million for the meetings." One goal of this series of invitation-only conferences is "to promote international collaboration in order to increase the likelihood of developing a future unified DSM/ICD," Oaks said.

"The DSM is the APA's psychiatric label book, while ICD is the disease classification system used internationally. In other words, these meetings are about the U.S. and the APA influencing a global system of classifying psychiatric disorders."

You don't have to be a rocket scientist to connect the dots on this one.

Wrong Answers

A December 31 Kansas City Star article reports that, according to the VA's own data, people who call the agency's regional offices for help and advice are more likely to receive completely wrong answers than completely right ones. During 2004, VA benefits experts called each of its regional offices that process veterans' disability claims to see how well its employees answer typical questions from the public. The callers, saying they were relatives or friends of veterans inquiring about possible benefits, made 1,089 calls. Amazingly, 81 percent of the time they received answers that the VA said were either completely incorrect or partly incorrect. According to an internal VA memo on the mystery-caller program:


The program also found that some VA workers were dismissive of some callers and rude to others. For example, one caller said: "My father served in Vietnam in 1961 and 1962. Is there a way he can find out if he was exposed to Agent Orange" The VA's response, according to the VA memo: "He should know if they were spreading that chemical out then. He would be the only one to know. Okay (hung up laughing)."

Tom Berger is a writer for The VVA Veteran, the official voice of Vietnam Veterans of America, Inc. An organization chartered by the U.S. Congress.

Insights, Analysis, and Developments

Editorial Note: The events documented in this article reveal a pattern that should concern every disabled veteran and anyone who depends on the VA benefits system - a pattern in which the response to discovering inconsistencies in how PTSD claims were processed was not to fix the inconsistencies but to cast suspicion on the veterans who filed the claims. When members of Congress used an Inspector General report to allege fraud, when secret expert panels were convened without public disclosure, and when the VA's own mystery-caller program showed that its regional offices gave wrong answers more than 80 percent of the time, the picture that emerges is one of a system failing the people it was built to serve. For Vietnam veterans and subsequent generations of combat veterans living with PTSD, the fight for fair and consistent disability compensation has never been purely medical - it has always been political, and this reporting from The VVA Veteran captures that reality with clarity - Disabled World (DW).

Attribution/Source(s): This quality-reviewed publication was selected for publishing by the editors of Disabled World (DW) due to its relevance to the disability community. Originally authored by Tom Berger and published on 2008/01/01, this content may have been edited for style, clarity, or brevity.

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APA: Tom Berger. (2008, January 1 - Last revised: 2026, February 20). Veterans PTSD Disability Compensation Payment Disputes. Disabled World (DW). Retrieved April 17, 2026 from www.disabled-world.com/news/veterans/vets-compensation-payments.php
MLA: Tom Berger. "Veterans PTSD Disability Compensation Payment Disputes." Disabled World (DW), 1 Jan. 2008, revised 20 Feb. 2026. Web. 17 Apr. 2026. <www.disabled-world.com/news/veterans/vets-compensation-payments.php>.
Chicago: Tom Berger. "Veterans PTSD Disability Compensation Payment Disputes." Disabled World (DW). Last modified February 20, 2026. www.disabled-world.com/news/veterans/vets-compensation-payments.php.

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