Entitled Veterans Generally Received Clothing Allowance but Stronger Controls Could Decrease Costs

Veterans may apply for an annual clothing allowance benefit if they have a service-connected disability and use a prosthetic or orthopedic appliance or use a prescription skin medication that damages clothing. For fiscal year 2019, about 92,000 veterans received about $98 million in payments. The VA Office of Inspector General (OIG) determined whether entitled veterans received their annual clothing allowance benefit. The Veterans Benefits Administration (VBA) jointly administers the benefit with the Veterans Health Administration (VHA). VHA is responsible for administering and awarding benefits. VBA’s role is to inform veterans of potential entitlement, budget for the benefit, and provide data management and information technology support. VA generally ensured entitled veterans received their annual clothing allowance benefit. However, the OIG found that the VHA handbook needs detailed guidance on administering the benefit, including the roles, responsibilities, and functions of all staff involved. The OIG also found that some veterans may no longer meet entitlement requirements. Although most veterans are required to apply each year for benefits, those given “recurring status” are automatically renewed. To prevent overpayment errors, recurring status was eliminated in August 2012. If those cases were reevaluated, an estimated 31,200 veterans may not qualify based on changes in device design or technology. Reevaluation could save about $129.7 million over the next five years. The OIG recommended the under secretary for health revise the VHA clothing allowance handbook to include detailed procedures for determining and monitoring benefit entitlement. The OIG also recommended the under secretary, in collaboration with VBA, reevaluate veterans’ entitlement to recurring clothing allowance benefits.