~ The Veteran Fraud Reimbursements Act would make it easier for veterans with disabilities to be made financially whole in the event they are defrauded of their benefits ~
WASHINGTON, DC – Today, U.S. Senators Mazie K. Hirono (D-HI), John Boozman (R-AR), Ruben Gallego (D-AZ), and Tommy Tuberville (R-AL), members of the Senate Veterans Affairs Committee, introduced the Veteran Fraud Reimbursement Act, bipartisan and bicameral legislation to make it easier for veterans with disabilities to be made financially whole in the event they are defrauded of their benefits. The legislation allows the Veterans Benefits Administration (VBA) to reimburse victims of fraud without first meeting unnecessary bureaucratic requirements. Companion legislation was introduced in the House by U.S. Representatives Gerry Connolly (D-VA) and Juan Ciscomani (R-AZ).
“Our veterans have made the ultimate sacrifice in service to our country and if they are defrauded of the benefits they have earned, they should not have to deal with unnecessary hurdles in order to be made financially whole again,” said Senator Hirono. “Due to the oversight in the VBA fiduciary program, some veterans are dying before they ever receive their reimbursements—that is unacceptable. That is why I am glad to join my colleagues in this bipartisan, bicameral push to support defrauded veterans and help ensure they get the benefits they deserve in a timely fashion.”
“Disabled veterans who are victims of benefit fraud should not have to endure bureaucratic delays in order to receive reimbursement,” said Boozman. “Ensuring the VA has established protocols to reinstate the hard-earned benefits of those who have served is not only commonsense, but a critical part of strengthening the services veterans deserve, expect and rely on.”
“It’s unacceptable that the veterans who put their lives on the line for this country could be defrauded out of the benefits they earned. To make matters worse, right now, defrauded veterans often have to wait years before they get their money back. We owe it to them to cut the red tape and make sure they’re repaid quickly without having to jump through unnecessary bureaucratic hoops,” said Senator Gallego.
In January 2021, Congress enacted the Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act. The bill included a provision meant to improve the VBA fiduciary program, which helps deliver benefits to veterans who cannot otherwise manage their finances. Unfortunately, one unintended consequence of the provision is that all cases of benefits misuse now require what is known as an internal negligence determination by VBA before a veteran who is a victim of fraud can be made financially whole.
In a July 21, 2021 report, the VA Office of the Inspector General (OIG) highlighted the significant wait times defrauded veterans in the VA fiduciary program face due to the universal negligence determination requirement. Some veterans even died before seeing their reimbursements. The Veteran Fraud Reimbursement Act will right this wrong by allowing the VBA to conduct a statistically valid analysis of the misuse cases to determine the rate and nature of negligence on the part of the VBA. The negligence determination would ultimately become a part of a quality assurance measure conducted after the affected veteran had been reimbursed.
The full text of the legislation is available here.
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