Walorski, Hultgren introduce bill to prevent delayed VA payments from negatively impacting veterans’ credit ratings

Bipartisan legislation introduced on Wednesday by U.S. Reps. Jackie Walorski (R-IN) and Randy Hultgren (R-IL) would prevent delayed benefit payments through the Department of Veterans Affairs (VA) Veterans Choice Program.

Currently, untimely disbursements through the Veterans Choice Program lead to inaccurate medical debts accumulating for veterans while the VA and private medical providers hash out billing questions. The delayed payments can hurt veterans’ credit ratings, making it more expensive for them to finance the purchase of a home or a car. Delayed payments can also make it more difficult to pass a background check for a new job.

The Protecting Veterans Credit Act, H.R. 5593, would establish a one-year credit reporting grace period in order to resolve payment issues through the Veterans Choice Program.

“I have heard from too many veterans asking my office for help because the VA or a VA contractor hasn’t paid their medical bills after receiving authorization for care through the Veterans Choice Program,” Walorski, a member of the House Veterans’ Affairs Committee, said.

The legislation, which was also cosponsored by U.S. Reps. John Delaney (D-MD) and Kyrsten Sinema (D-AZ), would establish a mechanism for veterans to dispute adverse actions that are already on their credit reports.

Additionally, the bill would require debt collectors to provide veterans with written information about who to contact to resolve issues.

“This is simply unacceptable, which is why I’ve joined Congressman Delaney, Congressman Hultgren and Congresswoman Sinema in introducing the Protecting Veterans’ Credit Act to protect our veterans from further financial harm,” Walorski said. “Delaying for one year the reporting of medical debt from services under the Veterans Choice Program will provide much-needed relief for these veterans while the VA, contractors, and providers work to resolve these billing issues.”

Enough veterans have faced collateral damage from VA payment delays, Hultgren said, and veterans’ credit scores shouldn’t be “another casualty of this bureaucracy.”

“Veterans and their families deserve accurate and timely billing and reimbursements from the VA,” Hultgren said. “They should not be held liable for the VA’s problems. We need quick action on this legislation to ensure our veterans aren’t held responsible for bureaucratic ineptitude.”

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