WASHINGTON – U.S. Senator Jerry Moran (R-Kan.) – chairman of the Senate Committee on Veterans’ Affairs – called on the Department of Veterans Affairs (VA) to address concerns related to the potential for waste, fraud and abuse within VA’s Foreign Medical Program (FMP) and urged VA to act to protect veterans living overseas and make certain taxpayer dollars are being managed correctly.

Last week, the Government Accountability Office (GAO) released a detailed report regarding concerns with the management of the FMP following a VA Office of Inspector General (OIG) investigation that found a significant amount of fraudulent FMP payments in Panama. Sen. Moran’s letter requests VA to promptly implement GAO’s recommendations and assess the extent to which other fraudulent payments may have occurred in FMP by reviewing high-risk payments and excluding FMP providers on federal lists for nonpayment.

“These Panamanian providers submitted thousands of false claims to FMP for services that were double billed, grossly overpriced, unnecessary, or not rendered,” wrote Sen. Moran. “This long-term fraud scheme resulted in an estimated loss of $67 million for American taxpayers. In light of this, it is clear that FMP’s vulnerability to scams of this nature require urgent attention to prevent further waste of taxpayer resources and the responsible provision of health care to veterans residing abroad.”

Sen. Moran’s full letter to GAO can be found HERE and below.

February 26, 2025

Dear Secretary Collins,

I write to share my concern with the Department of Veterans Affairs’ (VA’s) Foreign Medical Program’s (FMP’s) susceptibility to fraud, waste, and abuse and to urge you to take immediate action to protect veterans living overseas and ensure appropriate stewardship of taxpayer dollars.

On February 19th, the Government Accountability Office (GAO) released a report entitled, “Actions Needed to Improve the Foreign Medical Program (GAO-25-107149).” This report detailed a number of concerns within the FMP and built on prior findings of a VA Office of Inspector General (OIG) investigation on fraudulent payments to a group of FMP providers in Panama. These Panamanian providers submitted thousands of false claims to FMP for services that were double billed, grossly overpriced, unnecessary, or not rendered. This long-term fraud scheme resulted in an estimated loss of $67 million for American taxpayers. In light of this, it is clear that FMP’s vulnerability to scams of this nature require urgent attention to prevent further waste of taxpayer resources and the responsible provision of health care to veterans residing abroad. 

GAO’s recommendations align with your stated priorities to root out government waste, and make certain that VA utilizes taxpayers’ dollars more efficiently in support of veterans, caregivers, and survivors. To that end, in addition to prompt implementation of GAO’s recommendations, I request that you assess the extent to which other fraudulent payments may have occurred in FMP in fiscal years 2020 through 2024, including by:

1.  Assessing payments made with mismatched billing addresses, duplicate billings, and possible overcharges for services, among other factors indicative of fraud and take steps to prevent similar fraudulent activity in the future and;

2. Assessing the extent to which FMP providers are on federal lists for nonpayment, such as the Department of the Treasury’s Do Not Pay List, and take steps to bar them from participation in FMP.

In conducting these assessments, VA should prioritize countries with significant spikes in total payment amounts and other indicators of possible fraud. For example, in recent years, FMP experienced large increases in claims paid for services provided in the Dominican Republic and in payments sent to U.S. Post Office boxes for services performed in foreign countries – both of which could be signs of possible inappropriate practices that merit further review.

Please provide me with a detailed report, within 90 days of receipt of this letter, on the results of these assessments and your plan to address and prevent potential fraud within FMP going forward. Please note in such report if you require additional or amended statutory authority or other Congressional support to enable VA’s work in this regard.

Thank you for your prompt attention to this matter and your commitment to better serving our nation’s veterans and their families.

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