For-profit consultants make millions of dollars every year by charging veterans for assistance in submitting disability claims to the U.S. Department of Veterans Affairs. Federal law forbids non-accredited businesses from charging fees, but there are no criminal sanctions for infractions. Therefore, these tactics exploit Alaska’s veterans’ disability claim loophole.
While some state lawmakers push for reform, attempts to regulate this shadow business in Congress have stalled. Within the last year, three states, Maine, New Jersey, and New York, passed legislation to stop the misuse of the veterans’ disability claim loophole.
A law in Louisiana permits consultants to charge up to $12,500 for services that veteran organizations provide for free. “When we have organizations and companies out there like these claim sharks that are preying on our veterans and taking away their hard-earned benefits and making a profit off them,” said Aid Missouri Republican state Rep. Dave Griffith
Furthermore, Griffith submitted a bill to sanction people who profit from helping veterans; however, it was unsuccessful in committee. Motivated by reforms in places such as New Jersey, he intends to reintroduce the measure.
Consultants argue veterans deserve the choice to hire assistance to navigate the VA’s slow and complex application process. Peter O’Rourke, president of the National Association for Veteran Rights, supports disclosure laws over criminal penalties. “There’s a better way of doing business, and we need to have more of that discussion,” he said.
Critics, including lawmakers and veteran organizations, highlight predatory practices, with fees five times the veterans’ monthly benefits. Griffith shared cases where consultants delayed filing claims to maximize their share of back pay benefits.
As Congress debates the stalled federal GUARD Act, states continue introducing reform bills. This year, 17 states proposed laws addressing Alaska’s veterans disability claim loophole, but lobbyists have slowed the progress because they want the loophole sealed into place at the state level.
With the PACT Act, which is the most significant expansion of veterans’ benefits in generations for millions, the urgency to protect veterans from exploitation continues to grow nationwide.
This news article was originally published by Alaska Beacon.
