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VA Launches Incentive to Increase the Dollar Benefit for Disability Claims
On
August 1, 2013 the Department of Veterans Affairs division of Veterans
Benefits Administration announced a substantial two year-long incentive
for veterans filing claims under the new fully developed claim system.
This initiative takes effect on August 6, 2013 and runs through August
5, 2015. For first-time claims for disability compensation – using a
fully developed claim – VA will grant an additional year of benefit, if
the claim is successful. According to Thomas Day, chief training
officer of the Senior Veterans Service Alliance, this is a substantial
incentive to use fully developed claims. Mr. Day used an example of a
veteran rated at 60% disability who would normally receive $12,312 in
his first year of an award under the traditional claim procedure but who
could receive $24,624 in his first year of an award using the fully
developed claim process. Mr. Day also pointed out that for attorneys or
agents who assist with appeals, this example may result in up to an
additional $2,462 in fees for that attorney or agent who successfully
represents the veteran using a fully developed claim depending on
whether the incentive also applies to fully developed claim appeals.
The Department of Veterans Affairs announced this week that Veterans filing an original Fully Developed Claim (FDC) for service-connected disability compensation may be entitled to up to one-year of retroactive disability benefits. The retroactive benefits, which are in effect Aug. 6, 2013, through Aug. 5, 2015, are a result of a comprehensive legislative package passed by Congress and signed into law by President Obama last year.
"VA strongly encourages Veterans to work with Veterans Service Organizations to file Fully Developed Claims and participate in this initiative, since it means more money in eligible Veterans' pockets simply by providing VA the information it needs up front," said Allison A. Hickey, Under Secretary for Benefits. "At the same time, it helps reduce the inventory of pending claims by speeding the process." Filing an FDC is typically the fastest way for Veterans to receive a decision on their claims because Fully Developed Claims require Veterans to provide all supporting evidence in their possession when they submit their claims. Often, this is evidence that VA legally must attempt to collect on the Veteran's behalf, which is already in the Veteran’s possession, or is evidence the Veteran could easily obtain, like private treatment records.
When Veterans submit such evidence with their claims, it significantly reduces the amount of time VA spends gathering evidence from them or other sources -- often the longest part of the claims process. While VA will still make efforts to obtain federal records on the Veterans' behalf, the submittal of non-federal records (and any federal records the Veteran may have) with the claim allows VA to issue a decision to the Veteran more quickly. Typically, VA processes FDCs in half the time it takes for a traditionally filed claim.
FDCs can be filed digitally through the joint, DoD-VA online portal, eBenefits (www.ebenefits.va.gov). VA encourages Veterans who cannot file online to work with an accredited Veterans Service Organization (VSO) who can file claims digitally on Veterans' behalf. While submitting an FDC provides a faster decision for any compensation or pension claim, only Veterans who are submitting their very first compensation claim as an FDC are potentially eligible for up to one-year of retroactive disability benefits under the newly implemented law.
FDCs help eliminate VA's claims backlog because they increase production of claims decisions and decrease waiting times. Also, VA assigns FDCs a higher priority than other claims which means Veterans receive decisions to their claim faster than traditional claims.
VA continues to prioritize other specific categories of claims, including those of seriously wounded, terminally ill, Medal of Honor recipients, former Prisoners of War, the homeless and those experiencing extreme financial hardship. As part of its drive to eliminate the claims backlog in 2015, VA also gives a priority to claims more than a year old.
In May, VA announced a new partnership with Veterans Service Organizations and others known as the "Community of Practice," an effort that seeks to reduce the compensation claims backlog for Veterans by increasing the number of FDCs filed by Veterans and their advocates.
VA is continuing to implement several initiatives to meet the Department’s goal to eliminate the claims backlog in 2015. In May, VA announced that it was mandating overtime for claims processors in its 56 regional benefits offices to increase production of compensation claims decisions through the end of FY 2013. In April, VA launched an initiative to expedite disability compensation claims decisions for Veterans who have a waited a year or longer
As a result of these initiatives, VA's total claims inventory remains at lower levels not seen since August 2011. The number of claims in the VA backlog – claims pending over 125 days – has been reduced by 17 percent compared to the highest point in March 2013.
Veterans can learn more about disability benefits on the joint Department of Defense—VA web portal eBenefits at www.ebenefits.va.gov, and the FDC program at www.benefits.va.gov/fdc.
In August, the Government Accountability Office (GAO ) released the details of its investigation of accreditation practices of the Department of Veterans Affairs' Office of General Counsel. Accreditation allows attorneys to assist veterans in applying for claims, and is regulated by the DVA-OGC. No one may assist a veteran in the preparation, presentation or prosecution of a claim for veterans benefits without this 'Accreditation' authority. Four senators responsible for veteran’s issues commissioned the report from the GAO – which was highly critical of the oversight provided by the Office of General Counsel in granting accreditation authority and in administering ongoing accreditation requirements as well as the handling of complaints relating to individuals who are or who are not accredited.
The GAO report recommends the DVA-OGC should address the following concerns: 1. Ensure appropriate level resources to implement the accreditation program, including options for utilizing other VA components and resources outside of OGC.
2. Strengthen initial and continuing knowledge requirements for accreditation representatives.
3. Enhance communications with claimants, including reports of complaints related to their representation. Explore options for incorporating information about representation and veterans’ rights into existing communications and outreach efforts.
4. Address potentially abusive practices by representatives who lack accreditation, charge inappropriate fees, or sell financial products to claimants that are not in their best interest. VA should consider additional authority for such practices and to enforce program rules.
VA generally concurs with the GAO that these issues need to be addressed and in some cases the department will be taking corrective action to provide better oversight. Of particular concern to accredited attorneys and accredited agents at this point are the following actions that VA may initiate in the near future.
- Doing a better job of conducting background investigations for applications for accreditation from attorneys and agents.
- Working through the current backlog of yearly certifications of good standing and taking corrective action towards those who are not in good standing or who have not submitted their certification.
- Working on a solution to notify agents and attorneys who are deficient in completing CLE to provide proper notification and follow-up action. VA does keep track of those individuals completing CLE but does not notify those who are deficient. In addition VA does not notify or identify anywhere on its website those individuals who have submitted CLE or acknowledge compliant completion of their training.
- Looking at better training for attorneys and agents in order to make them more effective in representing claimants. A major complaint about attorneys and agents is that most are deficient in the knowledge to adequately handle all types of claims. Veterans service organizations, in particular, complain about the number of claim questions they regularly receive from accredited attorneys and accredited agents.
- Coming up with a better system of notifying claimants of their right to complain about representation and about the unlawful charging of fees. VA will most likely pursue congressional legislation to put teeth into its ability to punish accredited individuals who are not compliant and go after non-accredited individuals who are taking advantage of veterans.
Everyone should be aware that the Office of General Counsel generally recognizes that attorneys can charge a pre-filing consultation fee that is related to a claim but is not a part of the preparation, presentation and prosecution of a claim. The OGC allows that any accredited attorney or agent may charge a fee for any services not related to assistance with a claim. Of course, accredited attorneys and accredited agents can charge a reasonable fee for assistance after a notice of disagreement has been filed or if they are engaged for a fee to provide an initial claim by a disinterested third-party. Claim representatives of veterans service organizations are absolutely prohibited from charging any fee of any kind.
