Key Takeaways:
- Companies are charging disabled veterans thousands of dollars for help with disability claims, despite the Department of Veterans Affairs (VA) saying the service should be free.
- The VA has sent warning letters to over 40 companies, but lacks the power to enforce the law and stop the practice.
- Some companies are using questionable tactics, such as accessing the VA database to find out if a veteran has been awarded benefits and sending them a bill.
- Congress is taking notice, with a bipartisan group of lawmakers calling for action to hold these companies accountable.
- There are currently two bills in Congress, one that would crack down on these companies and another that would legitimize them with a price cap on what they can charge.
Introduction to the Issue
The Department of Veterans Affairs (VA) has stated that disabled veterans should not be charged for help with filing disability claims. However, companies around the country are doing just that, with some veterans receiving bills of $10,000 or $20,000. This practice has led to criticism, with some calling these companies "claim sharks." The issue is complex, with some veterans feeling that the free help offered by nonprofits is not sufficient, and therefore turning to these companies for assistance. However, the high fees charged by these companies have raised concerns about exploitation and the need for greater oversight.
Lack of Oversight
The VA has sent warning letters to over 40 companies over the past 10 years, but the agency lacks the power to enforce the law and stop the practice. The federal law prohibits charging veterans for help with initial disability claims, but there is a loophole that means there is no punishment for companies that break the law. As a result, these companies are able to continue operating with impunity. The VA’s inability to police these companies has led to a situation where veterans are being taken advantage of, with some companies using questionable tactics to get paid.
Company Practices
One company, Trajector Medical, has been accused of using a computerized robo-dialer system to access the VA database and find out if a veteran has been awarded benefits. The company then sends a bill to the veteran, even if they did not feel that the company was responsible for their award. This practice has been described as "predatory" and has raised concerns about the company’s business practices. Trajector Medical claims that it discloses its practices to veterans and that any dissatisfied customers should contact them. However, the fact that the company is able to access the VA database and send bills to veterans without their knowledge or consent has raised serious concerns.
Congressional Response
The reporting on this issue has caught the attention of Congress, with a bipartisan group of lawmakers calling for action to hold these companies accountable. Congressman Chris Pappas, a Democrat from New Hampshire, has sponsored legislation to crack down on these companies and has expressed alarm at the tactics used by some of them. However, there is also a bill in Congress that would legitimize these companies, with a price cap on what they can charge. The question of where to set this price cap is contentious, with companies lobbying for a higher cap and critics arguing that it should be lower.
Conclusion
The practice of companies charging disabled veterans for help with disability claims is a complex issue that requires greater oversight and regulation. The VA’s inability to police these companies has led to a situation where veterans are being taken advantage of, and it is up to Congress to take action to stop this practice. The bipartisan support for legislation to crack down on these companies is a positive step, but the question of how to regulate these companies and protect veterans remains to be seen. Ultimately, the goal should be to ensure that veterans receive the help they need without being exploited by companies looking to make a profit.