Disability Compensation Benefit Adjustments for Hospitalization Need Improvement

Veterans Affairs Office of Inspector General (OIG) sent this bulletin at 06/10/2020 12:33 PM EDT

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Given VA's need to focus on the COVID-19 response, the OIG has developed interim measures for releasing oversight reports. At this time, the OIG is generally releasing only those reports relevant to the COVID-19 pandemic; statutorily required or responsive to congressional requests; or that involve compelling circumstances related to the welfare of veterans, the safety of patients and VA personnel, or pose significant risks to VA resources. The report Disability Compensation Benefit Adjustments for Hospitalization Need Improvement is responsive to congressional requests for related information.

 

Disability Compensation Benefit Adjustments for Hospitalization Need Improvement
06/09/2020 08:00 PM EDT

The VA Office of Inspector General (OIG) conducted this audit to determine whether veterans received accurate compensation when hospitalized by VA for more than 21 days for service-connected disabilities. The OIG also examined whether claims processors met requirements to document the competency of veterans to handle VA funds who were admitted for service-connected mental health conditions. Veterans hospitalized for more than 21 days are entitled to receive temporary increases to 100 percent in tax-free disability compensation. Veterans Benefits Administration employees process the compensation adjustments based on hospital admission and discharge reports. Staff’s failure to properly start or end the temporary compensation increases can lead to underpayments or overpayments. The OIG estimated VA Regional Office employees did not adjust or incorrectly adjusted disability compensation benefits in about 2,500 of the estimated 5,800 cases eligible for adjustments, creating an estimated $8 million in improper payments in calendar year 2018. The OIG estimated 1,900 cases did not have competency determinations documented for service-connected mental health conditions. The deficiencies occurred because employees did not consistently generate required reports and maintain report logs. Managers also provided ineffective oversight. As a result, veterans risked not receiving the proper benefits. Employees who processed benefit adjustments also lacked proficiency. They lacked sufficient ongoing experience and training to maintain requisite knowledge. This is also why employees were unclear on the requirement to document the relevant competency of veterans admitted for service-connected mental health conditions. The OIG made six recommendations to the under secretary for benefits, including ensuring proper admission and discharge reporting, as well as making certain that employees receive refresher training when needed to properly process temporary benefit adjustments for eligible veterans.