[Mr. Obama and Mr. Gutierrez, thank you for the opportunity to talk with you

today about a critical benefit for veterans - disability compensation.]

This morning I will discuss the issue of pay disparities for disability

compensation benefits and the ongoing initiatives of the Department of Veterans

overview of our efforts to support returning service members and their families.

Consistency in disability evaluations and payments to veterans has become a

very visible concern in recent months. When the issue of consistency was first

raised, the Secretary asked the Inspector General (lG) to review and evaluate the

factors that contribute to state variances in VA disability compensation payments.

The IG published its review report on May 19, 2005, citing a number of

complex and intervening factors that influence variances in disability compensation

payments. Several recommendations were included to address the variance in

disability compensation payments. VBA concurs in the recommendations and has

efforts underway to implement them.

Considerable attention has been focused on the Chicago Regional Office's

low average annual disability compensation payment per veteran. However, when

measured on an annual basis, average payments to veterans in Illinois increased,

service to veterans in that part of the state.

In conjunction with the pilot, the Chicago RO will provide training to

representatives from local service organization posts who assist veterans with

benefit claims. The goal is to increase the knowledge of these community-based

representatives who are widely dispersed throughout the state so they can be more

Quality and consistency are goals that have been at the center of VBA's

efforts for the past three years. Achieving consistency and quality in our regional

office operations ensures veterans in every state receive the benefits and service

they have earned. Critical to our success is our standardized work management

model for claims processing. Under the Claims Processing Improvement Model,

veterans service center employees in every regional office are aligned into

specialized teams designed to expedite claims processing, increase the quality of

decision making, and ensure staff expertise.

Training, both for new employees and to raise the skill levels of the more

experienced staff; is obviously key to consistency in our rating decisions. VBA

deployed new training tools and centralized training programs that support greater

consistency. Training materials and satellite broadcasts on the proper approach to

rating complex issues have been provided to every field station. Regulations that

contain the Schedule for Rating Disabilities have been revised to eliminate

ambiguous rating criteria and replace them with objective rating criteria wherever

possible.

Accuracy is monitored through VBA's Systematic Technical Accuracy

Review (STAR) - a centralized program that measures national accuracy using

statistically valid sampling. STAR findings are distributed to field stations and shared

with training staff for incorporation into computer-based training modules, and other

training tools.

Regional office operations are monitored continually to identify areas where

quality improvements can be made and processing efficiencies can be realized. Site

visits are conducted on a regular basis to assess station management, operating

performance, training, and workload management. Training is provided by the site

visit team as needed.

members have a "seamless transition" from active duty to VA's benefits and

health care systems. VA employees provide services at 140 military bases, where

they meet with and counsel service members about their VA benefits and how to file

for those benefits as they approach discharge. VA has professional staff at the

Walter Reed Army Medical Center, the National Naval Medical Center at Bethesda,

the Landstuhl Army Medical Center in Germany, and other key military medical

facilities to ensure our wounded service members are aware of their VA health care

and benefits long before they are discharged.

We have implemented case management procedures for seriously disabled

service members of Operations Enduring Freedom and Iraqi Freedom (OEF/OIF) to

ease their transition to veteran status and ensure the coordinated delivery of benefits

and services. Every regional office and medical center has a designated OEF/OIF

coordinator who reaches out to and communicates with injured service members,

and ensures their health needs are met and their benefit claims are processed

expeditiously.

VA strives to honor each new veteran and their family with compassion and

dignity. Our challenge is to ensure that all regional offices are generating

.

consistently accurate and timely decisions that provide the maximum benefits to

[This completes my statement, and I will be happy to answer any questions

you might have.]