Veteran benefit assistance rules proposed
A bill that would create rules governing individuals who advise, assist or consult on veteran benefit matters for compensation was considered Jan. 21 by the Government, Military and Veterans Affairs Committee.
LB767, sponsored by Sen. Rick Holdcroft of Bellevue, would create the Certified Help Options in Claims Expertise for Veterans Act. He said the measure is intended to provide state enforcement of new consumer protections related to people who prepare veteran benefit claims for compensation.
Under the bill, veterans would be required to sign a waiver acknowledging that they have chosen to forego free services available to them through a Veterans Service Office and have a written, signed agreement with an agent.
Holdcroft said there are fewer than 200 Veterans Service Officers in the state to assist the approximately 120,000 Nebraska veterans who may need help filing for benefits. That equates to approximately 600 veterans for each VSO, he said.
“Veterans Service Officers do wonderful work,” Holdcroft said, “but simply can’t be expected to keep up with the demands of their comrades.”
Among other provisions, paid agents would be required to be recognized for such purpose by the U.S. Secretary of Veterans Affairs and would be prohibited from:
• charging an initial or nonrefundable fee;
• guaranteeing a successful outcome;
• charging interest on any payment plans agreed to by the parties;
• using international data centers to process a client’s personal information; or
• gaining direct access to a client’s personal medical, financial or government benefit accounts.
Compensation would be contingent upon an increase in benefits awarded and could not exceed five times the amount of the monthly increase in benefits awarded based on the claim.
Violations would be considered a deceptive trade practice under the Uniform Deceptive Trade Practices Act and subject to remedies and penalties.
Peter O’Rourke, president of the National Association for Veterans Rights and former acting Secretary of the U.S. Department of Veterans Affairs, testified in favor of LB767.
Veterans and their families must navigate a complex system in order to obtain benefits, he said, and protections are needed to make sure that they are not taken advantage of by those assisting them.
“[Without] these safeguards in this bill, they could fall victim to misleading and exploitative actors,” O’Rourke said.
Also testifying in support was John Blomstrom, a U.S. Marine Corps veteran from Keya Paha County.
Veterans deserve choices not mandates, Blomstrom said, and should be able to hire someone to help them pursue benefits. He said the VA system is “overwhelmed and slow” and even VSOs with the best intentions cannot meet the demand.
“LB767 gets it right,” Blomstrom said. “It protects veterans from bad actors without taking away their freedom to choose how they navigate an already difficult VA disability system.”
More than a dozen veterans, VSOs and veterans organizations opposed the measure, including Ken Yount. Speaking on behalf of Nebraska’s federal and state recognized veterans organizations, he said the measure would empower “middle men” who often exploit veterans.
Yount said VSOs are trained, subject to VA oversight and held to strict standards of conduct. They also must pass federal examinations, undergo background checks, participate in mandated continuing education and operate under transparent disciplinary systems, he said.
“In contrast, the non-accredited organizations and individuals have no VA training, no oversight and no accountability if misconduct occurs,” Yount said.
Judy Walters, Department Commander of the Nebraska American Legion, also opposed the measure on behalf of the organization. She said every county in the state has at least one VSO who is dedicated to helping fellow veterans obtain their benefits free of charge.
“No veteran should have to pay to get assistance from Nebraska,” she said.
The committee took no immediate action on LB767.
