Louisiana quietly enacted a law allowing unregulated companies to profit from the benefit claims of disabled American veterans.
Republican Governor Jeff Landry has refused to sign or veto Senate Bill 159, allowing it to become law by default. The governor is walking a political tightrope between the bill’s corporate sponsors, who are close to Trump, and its many opponents, including his own Secretary of Veterans Affairs and numerous veterans service organizations, including the American Legion, Veterans of Foreign Wars (VFW), and Disabled American Veterans (DAV).
Attorney General Landry took it upon himself to crack down on the types of businesses that would be supported by the new law, which went into effect on Tuesday.
The proposition, introduced by Sen. Stewart Cathy (R-Monroe), deals with an often misunderstood process for applying for veterans’ disability benefits. A loophole in federal law has created a lucrative, unregulated industry of “claims consulting,” a practice that is federally illegal but difficult to enforce.
When military personnel leave the military, they may be eligible to receive monthly cash benefits from the U.S. Department of Veterans Affairs (VA) for their service-connected disabilities. To receive benefits, they must complete paperwork supporting their claim and submit medical records and other relevant information.
The VA offers certification to anyone who wants to help veterans with disability compensation claims. To become certified, applicants must undergo a background check and written exam to ensure they can navigate the claims system and represent veterans in appeals.
Under federal law, it is illegal for anyone who is not VA certified to provide claims assistance to veterans, and it is also illegal to charge veterans for such assistance. According to an August 2023 report from Military.com, about 40% of complaints made to the VA’s legal department in 2022 were about uncertified claims consultants.
Lawmakers force Governor Landry to pass veterans’ disability benefits plan he previously opposed
A quick internet search for “VA claims consulting” will reveal a nearly endless list of non-certified companies offering claims assistance in obtaining disability benefits or applying for increased benefits.
Cathy’s bill would allow unlicensed consultants to charge veterans up to $12,500 to teach them how to fill out disability applications, which violates federal law.
Unknown to many veterans, these services are free and available from a number of VA-certified agencies, including private claims agents, lawyers and groups such as the American Legion and Veterans Association.
Cathy’s bill is derived from a federal bill introduced by Republican Sen. John Kennedy of Louisiana, but a congressional gridlock stalled the bill, leading supporters to introduce a revised version of the bill in state legislatures. So far, Louisiana is the only state to have approved the bill.
The driving force behind the bill are two unauthorized claims companies, Veterans Guardian and Veteran Benefits Guide, which work together under a lobbying group called the National Association of Veterans Rights. NAVR’s leader and chief lobbyist is VA Secretary Peter O’Rourke in the Trump administration.
“This landmark legislation protects Louisiana veterans from exploitation, ensures transparency in VA disability benefits assistance, provides vital protections while preserving their independence and strengthening their right to choice,” O’Rourke said in an email Thursday.
Veterans Guardian and Veteran Benefits Guide spent roughly $1.76 million and $960,000, respectively, lobbying on this one issue at the federal level, according to OpenSecrets.org. These figures do not include lobbying costs at the state level.
Veterans service groups have accused the companies of “insurance fraud” and profiteering. The Texas Tribune reported that one fraudulent practice involved consulting firms pressuring veterans to claim for conditions they didn’t have and paying referral fees to certain telehealth providers who would help diagnose them. One customer reported being charged $10,000 for “coaching” services that involved watching six hours of recorded video.
Still, some veterans have expressed gratitude to the unlicensed consultants for helping them secure increased benefits that other claims agents couldn’t get or didn’t seek, according to previous Illuminator reporting.
O’Rourke has sought to distance his company from unscrupulous players in the industry, denying the allegations of profiteering, saying his company helps ease the VA’s claims backlog and gives veterans options for paying for their benefits.
According to the VA, the backlog of claims as of June 1 was about 270,000, a steady decline after exceeding 400,000 last year. The backlog includes claims that have been unprocessed for more than 125 days. The highest number in the past decade was more than 600,000 claims in 2013, but that fell by about one-third within six months. The recent surge is due to a surge in claims following the passage of the PACT Act of 2022, the largest expansion of veterans benefits since World War II.
Lawmakers consider whether to give big benefits to veterans benefits consultants
The idea that veterans can pay a consultant or anyone else to speed up their disability benefits application or to get around VA bureaucratic procedures is a fallacy, veterans advocacy groups and the Louisiana Department of Veterans Affairs say. Applications all go through the same process at the VA, regardless of who fills them out. Uncertified consultants don’t have the special tools or elite-level access to put veterans at the front of the line, they said.
Louisiana Department of Veterans Affairs Secretary Charlton Meginley strongly opposed Cathy’s bill, saying consultants purposely avoid applying for certification, which would mean they would have to follow the same rules as certified claims agents and private attorneys. Once certified, they can’t charge high fees just for helping veterans fill out their initial claim paperwork. Instead, they have to work on appeals and more complicated matters to earn fees.
“Our mission is to support veterans and connect them to the benefits they earned while serving our country,” Meginley spokeswoman Brandy Patrick said in an email Thursday. “Louisiana veterans have access to a number of free services when applying for benefits, including LDVA’s federal VA-certified veterans assistance counselors located in parish veterans service offices across the state.”
The governor’s decision to sign the bill into law marks a complete change in his previous stance on the issue. Before becoming governor, Landry investigated and shut down unlicensed insurance claims consultants while he was attorney general. He accused Baton Rouge-based VetAttend Professional Services of helping veterans fill out paperwork for the VA and then skimming off a portion of their benefits.
Landry is also one of 44 state attorneys general who signed a letter urging Congress to support a challenge to Kennedy’s bill and reinstate penalties for unlicensed insurance claims consultants.
The governor’s office did not respond to a request for comment on the report.
Get morning headlines delivered to your inbox
subscribe