VA Scar Rating Errors: OIG Estimates Nearly 4 in 10 Painful Scar Decisions Had Mistakes (2026 Review)
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By VA Headlines staff · Published Oct 30, 2026 · Source document dated October 21, 2026
VA claims processors made mistakes on an estimated 17,900 painful scar disability decisions over one year, according to a VA Office of Inspector General (OIG) review published October 21, 2026.
What the OIG found
The OIG reviewed a sample of decisions granting or increasing ratings for painful scars, completed from June 1, 2024, through May 31, 2025. Based on that sample, the OIG estimated that 17,900 of about 47,300 decisions (about 38 percent) had at least one error. The sample contained 60 errors.
Of those, the OIG estimated that a minimum of about 920 decisions resulted in at least approximately $5.6 million in overpayments to veterans, which "will continue to accrue until VBA takes corrective action." These figures are statistical estimates from a sample, not a count of every case.
After briefing VBA in February 2026, the OIG reviewed 30 more decisions from January 2026 and found a 43 percent error rate, which it said confirmed the problem was continuing.
Why the errors happen
For a painful scar rating, an exam must document objective evidence, such as tenderness on examination, that supports the veteran's report of pain. The OIG found the scar disability benefits questionnaire (DBQ) does not clearly draw out that information. It also found VBA's claims system did not flag "pyramiding," rating the same symptom under two codes, for painful scars. VBA added a notification in its claims system on April 19, 2026.
VBA's response
The OIG made three recommendations, including revising the scar DBQ. VBA concurred, and the OIG considers one recommendation closed. In technical comments, VBA said only seven of the 60 sample errors resulted in improper payments and that the rest were technical or procedural. The OIG made no changes to its projections.
What veterans should know
This report is about how VA processed claims, not about any individual veteran's rating. Veterans with questions about their own scar rating can contact VA or an accredited representative.
Related: VA billing audit: $1.9 billion in visits missing from reports. How we report: Methodology & Corrections.
Review of Accuracy of Claims Processors' Disability Evaluation Decisions for Painful Scars
Report 25-03303-266 · October 21, 2026
Read the official document (PDF) · Report page
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