Rep. Jack Bergman, R-Mich., is leading a bill that would allow for-profit companies to provide initial claims assistance, for a fee, to veterans filing for disability compensation. Bergman, who is a member of the House Veterans’ Affairs Committee, speaks at a hearing in September 2024. (Joe Gromelski/Special to Stars and Stripes)

WASHINGTON — Advocacy groups that help veterans file disability claims for free with the Department of Veterans Affairs are opposing a Republican-led bill that would enable commercial companies to charge thousands of dollars for the same service.

The CHOICE for Veterans Act would allow private for-profit companies to offer initial claims assistance and charge up to $12,500 — or an amount equal to five times a monthly benefit award “increase,” according to the legislation.

But the Veterans of Foreign Wars, Disabled American Veterans and other veterans service organizations argue the help already is provided without charge by trained members of their organizations who receive accreditation from the VA.

VFW leaders expressed concern that commercial companies would charge veterans for the help before claims are final and benefits are determined.

“The VFW believes veterans should never have to go into debt to access their earned benefits,” the organization said.

Under federal law, it’s illegal to charge a fee for assistance with an initial filing for a disability claim.

Only VA-accredited representatives can legally assist with the VA claims. Accredited attorneys and claims agents can charge fees, but only after a final decision from the VA and required documents are filed, according to the agency.

The CHOICE for Veterans Act is led by Rep. Jack Bergman, R-Mich., a retired Marine Corps lieutenant general, and Rep. Mike Bost, R-Ill., chairman of the House Veterans’ Affairs Committee. Bergman is a committee member.

The lawmakers said the legislation opens up claims assistance to the private sector while establishing regulations to stop companies from making false assertions, such as promising an early decision or higher disability rating when the VA determines disability.

“This bill would ensure crooked claims sharks are punished while guaranteeing veterans the freedom of choosing honest paid services,” Bost said at a House Veterans’ Affairs Committee hearing in May that introduced the CHOICE for Veterans Act and more than a dozen other bills.

Current law that defines how disability claims can be prepared lack penalties for punishing offenders, said Rep. Chris Pappas, D-N.H., a member of the House Veterans’ Affairs Committee.

He has introduced a separate bill called the Guard VA Benefits Act to reinstate criminal penalties for unaccredited claim representatives who charge unauthorized fees.

“Veterans and their families should never pay a fee to file an initial claim for benefits. In fact, it’s unlawful for anyone to charge a fee for preparing an initial claim,” the VA states on its website.

Pappas opposes the CHOICE for Veterans Act.

“Instead of restoring VA’s authority to penalize illegal behavior, [the CHOICE for Veterans Act] would legalize it, granting accreditation without safeguards and allowing companies to charge up to $12,500 just for helping a veteran file their claim,” he said.

But the CHOICE for Veterans Act would require commercial companies to be accredited, with penalties in place for businesses that did not follow the process, Bergman said.

Accreditation through the VA involves an application, background check and exam on VA laws and procedures.

“The bill would prevent and punish bad actors seeking to take advantage of veterans while protecting their options and choice,” Bergman said. “VA will have the teeth it needs to punish bad actors.”

For-profit companies would have to disclose fees prior to rendering service and allow veterans to pay in installments, he said.

But Disabled American Veterans expressed concern that loosening the law will increase the risk that “unqualified representatives” will make mistakes in the claims preparation that could lower a veteran’s disability benefit or delay approval.

Dozens of nonprofit agencies and government organizations already provide free assistance in preparing and filing claims for veterans, according to the VA.

They include state government offices for veterans services as well as national nonprofit advocacy groups, such as Disabled American Veterans, Paralyzed Veterans of America and the Blinded Veterans Association.

VA-accredited representatives are authorized to help veterans and service members, as well as their dependents and survivors, according to the VA.

Under the CHOICE for Veterans Act, VA would be required to provide an online list of accredited representatives that provide the service for a fee.

The VA also would have to continue to inform veterans about accredited veterans organizations that offer the service for free.