The Fee-for-Service Model in Veteran Advocacy: A Global Perspective and Benefits for Veterans

The invent of a fee-for-service model in veteran advocacy is not unique to Australia. In fact, many Commonwealth countries and the United States of America (USA) have explored similar options as veterans seek support due to a search for alternative options to traditional services providers or, in some cases, because no other options were available. Our research at KSC Claims has shown that Australia's fee-for-service landscape is the most advanced, least litigious, and, importantly, the most cost-effective in comparison to other nations. We feel this places Australia in a strong position to continue to refine and develop the advocacy space.

A Global Comparison

In some countries, there has been a prevailing view that veterans should only pay fees for appeals, rather than for initial claims. This belief has led to a situation where, in the United States, over 50% of all claims are appealed. This trend is particularly common when legal practitioners are heavily involved in the claims process.

Globally, the average cost for fee-for-service advocacy or legal representation for similar work is around 20-25% of the compensation amount. However, in Australia, the fee range for similar services tends to be lower, ranging from 3% to 10%.

This difference is significant and demonstrates the effectiveness of Australia's approach in ensuring that veterans are charged less while still receiving the support they need.

The Australian Approach: More Efficient, Less Costly

When reviewing the systems in different countries, it became clear that Australia's current fee-for-service model is unique in its efficiency and low cost, particularly when compared to countries such as the USA, Canada, and the UK. Claims processing in Australia is faster and more cost-effective, with fewer overall appeals being lodged. For instance, the percentage of claims that go to appeal in Australia is much lower than in the US and Canada. In Australia, only 2% of claims go to appeal, while in Canada, it is around 6%, and in the US, more than 50% of claims are denied and subsequently appealed.

Canada

In Canada, fee-for-service advocacy is allowed, with representation more common in appeals than in initial claims. Legal practitioners assist with complex claims or appeals, but there is no official endorsement from Veterans Affairs or the Canadian government for this model. The Royal Canadian Legion also offers services to veterans in need of advocacy support.

Typical fees in Canada range from 17% or a flat fee of around $15,000, depending on the case. Despite the availability of this support, the number of claims going to appeal is still notably higher than in Australia, where the number of appeals is relatively low.

United Kingdom

The UK also allows for fee-for-service advocacy in the veteran space. Claims can be made directly or through organisations such as the British Legion. Additionally, there is a large number of registered lawyers offering services via the Armed Forces Compensation Scheme (AFCS). Many Claims Management Companies (CMC) also provide advocacy, though most of these are not specialised in military claims.

Fees for these services in the UK typically range from 20% to 25%. These fees must be transparent, ensuring that veterans are fully aware of the costs involved.

New Zealand

In New Zealand, fee-for-service advocacy is allowed but not prevalent. Lawyers are more commonly involved in class action suits and complex appeals. The Royal New Zealand Returned and Services Association (RSA) offers advice services for compensation claims. With a relatively small military population, the number of claims remains low, but backlogs and potential expansions of entitlements may increase demand for advocacy services.

No-win, no-fee advocates typically charge around 25% for their services.

United States

The United States has a unique system for veteran claims. The Department of Veterans Affairs (VA) requires that anyone assisting with claims must be a VA-accredited attorney, claims agent, or representative of Veterans Service Organisations (VSOs). These representatives are not allowed to charge fees for the initial claim but can charge a fee (typically 20-33%) if an appeal is successful.

Interestingly, this system has led to a culture where a significant number of veterans' claims are denied initially, and over 50% of these claims are subsequently appealed. While the appeal process is successful around 50% of the time, this high rate of appeals leads to a more litigious environment than in countries like Australia.

The Advantage of Australia's Fee-for-Service Model

When compared to countries like the US, Canada, and the UK, Australia's fee-for-service model stands out in several ways. Not only are the fees lower, but the overall claims process is more efficient. Australia's veteran's face fewer appeals, and the system operates with greater transparency. This reflects a well-established, efficient system, although admittedly one that still has a long way to go before full maturity, that prioritises the veterans' needs, making it a global leader in fee-for-service veteran advocacy.

Furthermore, Australia’s model encourages a more collaborative, less adversarial process compared to other countries where legal practitioners are more entrenched in the system. This approach allows for quicker resolutions and less stress for veterans who simply want to access the entitlements they deserve.

KSC Claims is a company founded and run by Australian Veterans Luke Armstrong and Matt Dumars, with the sole aim of helping Australian veterans.

Have DVA related questions? Let’s chat:

?? [email protected] | ?? www.kscclaims.com.au