Dr. Loeb Proposes VA Disability Exam Process Changes

The proposal follows reports of oversight gaps in the billions of dollars spent annually on contracted veteran examinations.

Updated on Oct. 28, 2026 in Military Jobs

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Dr. Yisroel Loeb has proposed procedural reforms to the Department of Veterans Affairs following systemic oversight issues in contracted disability exam payments. AI Illustration. Upload story photo >

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In September 2026, Dr. Yisroel Loeb met with congressional offices in Washington, D.C., to propose reforms to the Department of Veterans Affairs disability examination process. This follows a period where the VA faced scrutiny over payment inaccuracies and oversight of the millions of exams conducted by contractors annually.

Why it matters

The VA relies heavily on third-party contractors to handle an immense volume of disability claims, raising concerns about the accuracy and management of these outsourced health evaluations. Addressing these procedural gaps is critical for ensuring that the over three million veterans seeking compensation annually receive consistent and fair reviews.

The Department of Veterans Affairs processed 3,111,399 disability compensation claims in fiscal year 2026. Contractors performed more than 3 million disability examinations during fiscal year 2024 to support this high volume of claims.

The players

Yisroel Loeb

Dr. Yisroel Loeb is a practitioner based in Phoenix who has conducted approximately 6,000 evaluations for veterans.

Department of Veterans Affairs

The Department of Veterans Affairs is the federal cabinet-level agency responsible for providing life-long healthcare services and benefits to eligible military veterans.

Empower Mental Health

Empower Mental Health is a provider organization that conducts more than 4,000 veteran evaluations on a monthly basis.

U.S. Government Accountability Office

The U.S. Government Accountability Office is a non-partisan legislative branch agency that provides auditing, evaluation, and investigative services for the United States Congress.

The details

The VA implemented written procedures requiring a second calculation to verify incentive payments to contractors after errors totaling $2 million occurred in the first quarter of fiscal year 2024. Additionally, the department established an online feedback form for contract examiners to improve direct communication and oversight.

Timeline

  1. In 2022, the VA required recalculations for contractor incentive payments.

  2. During the first quarter of fiscal year 2024, the VA issued $2 million in incorrect incentive payments.

  3. In September 2025, the VA launched an online feedback form for contract examiners.

  4. In September 2026, Dr. Yisroel Loeb met with congressional offices in Washington, D.C.

  5. On October 15, 2026, the VA announced its total disability claims processed for fiscal year 2026.

Market Landscape

The federal move toward increased oversight mirrors the findings of the August 2025 GAO report, which identified systematic weaknesses in how the government manages multi-billion dollar service contracts. This shift signals a broader trend of tightening administrative control over outsourced military healthcare services.

Veterans can expect potentially more reliable processing as the VA institutes new verification steps for contractor performance. These administrative updates aim to ensure that claims are handled with higher accuracy and accountability.

The takeaway

The management of disability examinations is an ongoing challenge for the VA as it navigates millions of claims annually. Implementing direct feedback mechanisms and rigorous payment verification remains the primary strategy for minimizing errors in the contractor-based system.

Further reading

For more on the current climate for veterans in the workforce, visit the Military Jobs section.

Source note: This article includes information reported by abc15 Arizona.

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Should the government overhaul the process for disability examinations provided to veterans?