Congressional & State Action Targets Fee-Based VA Claims Assistance

A bipartisan legislative effort and a congressional inquiry are underway regarding companies that provide fee-based assistance to veterans seeking Department of Veterans Affairs (VA) disability benefits. These actions follow an investigative report into the business practices of Trajector Medical, a Florida-based firm.

Legislative Actions

Bipartisan Auto-Dialer Bill

Representatives Chris Pappas (D-NH) and Don Bacon (R-NE) have sponsored a bipartisan bill that would prohibit companies from using auto-dialers to call federal agencies. The legislation, currently under consideration by the House Committee on Energy and Commerce, would amend telecommunications law.

Disability Claims Consulting Legislation

Congress is considering two competing bills related to for-profit claims consulting:

• GUARD VA Benefits Act: Sponsored by Representative Pappas, this bill proposes reinstating criminal penalties for charging veterans for initial claim assistance. The legislation is pending in the House Committee on Veterans' Affairs. A separate bill by Representative Pappas proposes reinstating civil penalties and effectively banning for-profit claims consulting.

• CHOICE for Veterans Act: Sponsored by Representative Jack Bergman (R-MI), this bill proposes regulating the industry and capping fees at $12,500.

Congressional Letter

A coalition of 43 members of Congress (42 Democrats and one Republican) sent a letter to the VA, the Federal Trade Commission (FTC), and the Consumer Financial Protection Bureau (CFPB). The letter requests information on measures these agencies are taking to protect veterans and uphold federal law regarding unaccredited claims representatives.

State-Level Actions

• California: Will impose penalties on firms charging veterans for initial disability claims, effective next year.
• Louisiana: A law allowing up to $12,500 in fees was struck down as unconstitutional.
• Alabama: Passed a ban similar to the GUARD Act.

Company Operations: Trajector Medical

Background

Trajector Medical was co-founded in 2014 by Jim Hill, a Navy veteran, and Gina Uribe, a nurse and former VA medical examiner. The company's parent, Trajector Inc., employed over 1,300 people by 2021 and filed a draft registration for a public offering in August 2021 before withdrawing it in January 2022.

Business Model

Trajector Medical charges veterans a fee for its services, typically five times the veteran's monthly VA disability check increase.

Company contracts state that it will use clients' personal information to access VA reporting systems. The company describes itself as a "medical evidence service provider," asserting it does not prepare or file claims directly. Company founder Jim Hill stated that the company provides a "medical evidence packet" for veterans to attach when filing their own claims.

Automated System and Billing

NPR's investigation reported that Trajector Medical uses a computerized system referred to as "CallBot." According to the investigation, this system dials the VA Benefits Hotline, inputting clients' social security numbers and birthdates to identify increases in monthly disability payments. Upon detecting an increase, the system triggers a bill, which can range up to $20,000, and initiates collection efforts.

Trajector stated it supports the anti-auto-dialer legislation and relies on clients to self-report success.

Veteran Accounts Reported

Dustin (former Army Ranger): After discontinuing work with Trajector and independently filing for benefits, he received a $4,500 bill upon being rated 70 percent disabled. He refused to pay.

Erik Jensen (Navy veteran): Reported that a link from Trajector led him to 28 pages of pre-filled VA disability claim forms, including first-person statements he stated he did not write. He inadvertently submitted the forms, resulting in a rating increase from 60% to 100% disabled and a $12,000 bill from Trajector. The submission was confirmed as successfully faxed to the VA.

Vernell Armstrong (Navy veteran): Received a bill for $877.55 after independently appealing a denied claim and receiving a favorable VA rating. She stated she had not communicated with Trajector employees for months prior. She refused to pay.

Enrique Miranda Cardenas (Marine Corps veteran): Reported that after submitting his claim through Trajector, he independently gathered additional medical records requested by the VA. Upon claim approval, Trajector billed him over $12,000. He paid $1,300 but declined the balance, citing his own work. He reported receiving daily collection calls, sometimes multiple times per day.

Dwayne (Navy veteran): Reported that Trajector pursued him for payment for three years after his initial claim was denied and his rating increase was obtained via an attorney. He received a $3,600 bill.

Benefit Karma Platform

The link used by Jensen originated from a Trajector email and directed him to a site called Benefit Karma. Trajector's director of communications, Steven Zenofsky, described Benefit Karma as a "separate and secure external software platform, which is freely and publicly available for use by all, which allows veterans to populate, review, edit and file their own forms."

The trademark for Benefit Karma is held by Ampry Holdings, an LLC registered to Trajector founders Jim Hill and Gina Uribe, sharing a business address with them. A former Trajector Inc. employee stated Benefit Karma was a product launched by Trajector Inc. in 2024.

Company Statements

Steven Zenofsky stated the company does not conduct claims consulting, preparation, or filing, and that the screenshot provided by NPR was not from Trajector Medical.

Legal and Regulatory Context

Federal Law

Federal law prohibits charging fees for preparing and filing initial disability claims. Individuals assisting veterans with initial claims must be accredited by the VA and provide services free of charge. In 2006, Congress removed criminal penalties associated with violations of this law.

VA Actions

The VA sent warning letters to Trajector, including one in June 2017 to its predecessor, Vet Comp & Pen Medical Consulting. VA Chief Counsel David J. Barrans stated in the 2017 letter that the company's marketing materials "strongly suggest that your organization is unlawfully assisting in the preparation, presentation and prosecution of claims before VA." The letter urged the company to cease such activities. Trajector responded stating compliance with the law and received no further replies from VA.

VA Press Secretary Pete Kasperowicz stated that VA is committed to preventing exploitation of veterans and collaborates with law enforcement when fraud is suspected.

Federal Lawsuit

Trajector faces a federal lawsuit in California alleging failure to obtain proper consent for its CallBot system.

Company Contracts and Collections

Trajector's contracts include a clause requiring binding arbitration, preventing lawsuits against the company. Former invoicing and collections staff described receiving frequent calls and emails from veterans disputing bills and reported pressure to meet collection quotas. Trajector stated that "individuals working in collections are routinely subjected to verbal abuse, frustration, and anger from customers" across all industries and that its communications are designed to be professional and respectful.

State Attorney General

The Florida Attorney General's office, where Trajector is based, received over 50 complaints about the company but declined to comment on investigations.

Expert Comment

Michael Missal, former VA Inspector General, stated that Trajector's use of Benefit Karma for claim submission "certainly violates the spirit and I would say it would violate the meaning of the law as well."

Industry Reaction

Lukas Simianer, CEO of VetClaims.AI, a company charging a flat fee of $1,250 for claim assistance, stated that the GUARD Act might overly restrict veteran choice but supports fee caps.