Louisiana Law Enables Unregulated Firms to Profit from Veterans' Disability Claims
Louisiana Law Enables Unregulated Firms to Profit from Veterans' Disability Claims
Louisiana has enacted a contentious law allowing unregulated companies to profit from the disability claims of American veterans. Gov. Jeff Landry let Senate Bill 159 become law without signing or vetoing it, balancing corporate sponsors and numerous critics, including his Veterans Affairs secretary and major veteran organizations like the American Legion and Veterans of Foreign Wars (VFW).
The new law, sponsored by Sen. Stewart Cathey, R-Monroe, addresses the process of filing for veteran disability benefits. Loopholes in federal law have fostered an unregulated industry profiting from “claims consulting,” illegal under federal law but hard to enforce.
Veterans eligible for benefits must submit forms and medical records to the U.S. Department of Veterans Affairs (VA). The VA accredits individuals assisting veterans, requiring a background check and exam. Non-accredited individuals are prohibited from providing claims assistance or charging for it. In 2022, about 40% of VA legal complaints involved non-accredited consultants.
Cathey’s bill permits unaccredited consultants to charge up to $12,500 for advising veterans on forms, conflicting with federal law. Accredited services are available for free through organizations like the American Legion and VFW.
Inspired by a stalled federal proposal from U.S. Sen. John Kennedy, R-Louisiana, the law gained state-level traction, with Louisiana being the first to pass it. Veterans Guardian and Veteran Benefits Guide, two major unaccredited claims companies, supported the legislation through the lobbying group National Association of Veterans Rights, led by former VA Secretary Peter O’Rourke.
While some veterans appreciate unaccredited consultants for securing benefit increases, advocates argue these consultants cannot expedite claims or bypass VA bureaucracy. All claims follow the same VA process regardless of assistance.
Louisiana VA Secretary Charlton Meginley opposed the bill, arguing consultants avoid accreditation to charge high fees. Accredited agents cannot charge for initial claims assistance, only for appeals and complex cases.
Gov. Landry’s decision to let the bill pass marks a shift from his previous stance as attorney general, where he cracked down on unaccredited consultants. His office did not respond to requests for comment.
