Mileage Rembursment

[Chuck75]

Old news, but useful in understanding the VA ways of doing things.

 

Feb xx, 2012                                                                           Reference:  VAMC Reply xxxx/xx

 Dear Representative  xxxxxxx

In my opinion, the VAMC Director's reply letter tries to justify the use of an inaccurate computer program, and fails to properly address past and current underpayments to veterans. Please note that a round trip doubles the amount shortchanged veterans.

The DVA is obliged by law to pay travel reimbursements at a certain rate per mile, less a deductible.   By law and regulation, mileage is from the veteran’s residence or point of travel origin, whichever is the lesser.

The shortest reasonable driving distance is also a factor, since roads don't usually go directly from point a to point b..

 

The DVA’s on line posted information (copy previously furnished) show  that accurate methods exist and that the DVA acknowledges them.  Use of the program clearly failed the accuracy requirement.

Obviously, the most advantageous reimbursement to a veteran is the most accurate.  Particularly since the DVA’s present policy is to not offer currency, but rather to send a check or direct deposit.  

 Expediency and the convenience of the DVA do not outweigh the need and legal requirement for accurate reimbursement, particularly when a deductible is subtracted from any reimbursement.

 The DVA has frequently prosecuted veterans for claiming and accepting reimbursements based upon inflated or incorrect mileage. Several cases a year are publicized in national news.

Unfortunately, veterans do not have a similar option when the DVA intentionally uses a method that reduces reimbursement to a lesser amount than is provided by law and DVA stated policy/practice.

 The cost  to the DVA of the administrative paperwork and process involved in using the only options a veteran has in asking for redress exceed by far the cost difference between paying a veteran an accurate reimbursement and the lesser amount provided by the DVA’s computer program.  The program is believed to have been derived from a "standard" automotive insurance industry program used to help calculate insurance rates by using zip code to zip code related distances.

 Although a relatively minor amount of money is involved per veteran per trip, the issue clearly demonstrates that the DVA can state something in writing, and then deliberately do something else.  This is even more serious than a monetary error, and clearly demonstrates that the DVA cannot be believed in what they say and do. The end result is that veteran’s mistrust of the DVA to do things as they should, and as they are required to do is fully understandable, and justified.

 When you apply such an error to the amount of funds involved in veteran reimbursements, using a conservative number per VAMC the amount is staggering.  The number of VAMCs is about 152.  Using about one half the error involved in the 43 vs 53 mile issue that I experienced, and assuming that the VAMC has an average number of veteran patients (I believe that it is one of the smaller VAMCs.). The total amount of money short changed veterans from all VAMCs that used the computer program easily exceeded tens of millions of dollars a year nationwide. How many years has this program been in use?  How many claims are involved? What happened to the funds that were not paid to veterans?  

 It’s also possible that a veteran might be overpaid. I’d be curious to see if the VA continues to use the computer program in these cases, or uses the actual travel mileage to avoid over-payment. 

A later change involved the VA using the shortest distance reported by any of the approved methods.

 

Notes: At the time, the VA OIG was "Too Busy" with other tasking to deal with such a "minor issue". (Millions of dollars!)

The VAMC Director's reply was less than useful. It basically said that they were eventually going to change to a "new" method that supposedly meets the requirements in law. The new method seems to more or less match the distance methods

called out in law and regulation.  Some changes to this document were made prior to posting to help prevent identifying the VAMC Director and the Representative. 

It's also of note that the Director was replaced (transferred), in part due to the scheduling scandals.

 

 

 

[green]

I'd keep all your records, perhaps they can serve as a basis for a more accurate reimbursement once the VA changes to this "new system that meets the intent of the law" which has yet to be identified/created.  I wonder if they have ever heard of mapquest or google?

[broncovet]

A few years ago, I used to get about $4 for round trip to my VAMC.  Its about 10 to 12  miles round trip.  Im not sure if there was a deductable or not.  

Now, that number is less than a dollar, so I quit applying for mileage.  I think it may have to do with a deductable, as well as they decreased the number of miles, even tho the VA did not move my home, and they did not move the VAMC.    The shortest distance to my VAMC has about 25 traffic lights and takes about 45 minutes.  I take the hiway, which has about 4 traffic lights, and takes about 15 minutes.  "Google maps" always routes me the hiway.   It saves neither gas nor time to travel the shorter distance with many more stop and go, stop and go.  The government knows that the shortest distance does not always use the least fuel.  The mileage ratings for most cars is much less for "city" than "hiway" reflecting just this issue.    

We used to have to wait in a rather long line for mileage money.

We dont have as long a wait, now.  You put your card in a machine that reads it, and sign your name for mileage, and in a few days its deposited to your account.  No waiting except when the machine is busy.  

About 1-2 years ago, my VAMC changed the way it does mileage reimbursements.   Pretty much, the Veteran can no longer get cash on the day of the appointment/travel, instead he is reimbursed and its deposited to a checking account in a few days.  

This change made some Vets very mad.  Many, many people in my area manage their finances poorly, always living on their last $20.  They needed that $5 or so NOW so they can put gas in their tank to get there.  

I always buy my gas when the price is at the lowest, and dont worry about how many days until payday, as I cant stand to live on my last $20 or even my last $100.  

My area is very poor.  I bought my home for 70,000 about 7 years ago and its all brick with a 2 car garage and a door opener in a "medium" area of town.  Its not the best, but not the worst area of town, by far.  Middle class, retiree's etc.    If I were forced to sell my home quickly, today it would probably bring $45-50 k, even tho I have improved the home much since moving in.

My neighbor has "moved out" giving the home back to the bank because she, too, has about 25,000 negative equity so she can not sell it for the amount owed on the house.  

The biggest reason is that Fannie Mae, who makes about 50% of all home loans, is under a forced government conservatorship, and has been for 8 years.  The profits from fannie mae are "swept" into the treasury, so that the company can not recapitalize and it means few people can qualify for a home loan.  This hurts minorities and the poor the worst, as many people lost their home and cannot qualify for another one, as the qualifications are strict because fannie mae can not build up capital to make more loans, so they just make the profitable types of loans.    I actually have a fannie mae loan because the terms were better than Va when I bought my home.  I cannot refinance my home through VA, because I have negative equity, and an appraisal is required.  

 

Edited February 16, 2016 by broncovet

[Chuck75]

3 hours ago, green said:

I'd keep all your records, perhaps they can serve as a basis for a more accurate reimbursement once the VA changes to this "new system that meets the intent of the law" which has yet to be identified/created.  I wonder if they have ever heard of mapquest or google?

That's what they were supposedly required to do, and chose to use the "program".

[Vync]

Hey Chuck,
My VAMC always tells me I can only get reimbursement from my house to the VAMC. This is the first I heard about the possibility of getting it from point of origin. I'll have to remember that. I think you are doing a great job holding their feet to the fire on this. Getting the mileage accurate would be a really big plus. I feel that the director and OIG are not interested because this has not hit the news media outlets. Personally, I think the whole deductible thing is a scam, but it is written into the law.

Hey Broncovet,
My drive to the VAMC is 21 miles one way. This morning, it took about 60 minutes and that was because I left very early and the traffic was decent. I really miss being able to pick up travel pay the same day as my appointment. Having to wait a week or two for the payment to arrive really does impact my ability to capitalize on current gas prices and buy smart. Gas prices here have gone up 10% since Friday. I know they are pretty low right now, but it makes me wonder how much I will be out by the time the money arrives.

[Chuck75]

4 hours ago, Vync said:

Hey Chuck,
My VAMC always tells me I can only get reimbursement from my house to the VAMC. This is the first I heard about the possibility of getting it from point of origin. I'll have to remember that. I think you are doing a great job holding their feet to the fire on this. Getting the mileage accurate would be a really big plus. I feel that the director and OIG are not interested because this has not hit the news media outlets. Personally, I think the whole deductible thing is a scam, but it is written into the law.

Hey Broncovet,
My drive to the VAMC is 21 miles one way. This morning, it took about 60 minutes and that was because I left very early and the traffic was decent. I really miss being able to pick up travel pay the same day as my appointment. Having to wait a week or two for the payment to arrive really does impact my ability to capitalize on current gas prices and buy smart. Gas prices here have gone up 10% since Friday. I know they are pretty low right now, but it makes me wonder how much I will be out by the time the money arrives.

Which ever is LESS usually applies! 

The part that always gets to me was that the distance to the VAMC and appointment scheduling always forces me into one or two meals out. The VAMC cafeteria is not a restaurant I'd ever freely choose!