Editor’s note: This article is the first in a series of four
By Larry Dandridge
I have recently received several phone calls and emails asking me what veterans should know about managing their VA debt. Management of VA debt is a complicated subject. Fortunately, the VA has published extensive, specific guidance on it. Therefore, I am going to attempt to cover it in a four-part series of articles in this edition and the next three editions of The Island News.
Do not panic
According to the VA “Debt Management” website https://bit.ly/46ASJxB, the VA offers four repayment or relief options for benefit-related VA debt:
- Monthly offsets. If you get VA benefit payments, the VA may keep (or “offset”) part or all of each payment to pay down your debt. This is how the VA collects your debt unless it approves another option.
- Repayment plan. If you can’t pay your full debt balance now, you can ask to make smaller monthly payments.
- Compromise offer. If you don’t get monthly benefit payments and can’t pay monthly, you can offer a lesser one-time lump sum amount as a full payment. If the VA accepts your request, you’ll have to pay the one-time amount within 30 days.
- Waiver. If even smaller monthly offsets or payments would cause you financial hardship, you can ask the VA to forgive (or “waive”) part or all debt. If the VA accepts your request, you won’t have to pay the amount waived. Learn more at the VA website titled “Waivers for VA Benefit Debt” at https://bit.ly/4dwxQWI.
The good news on suspended pension debt
According to the VA webpage titled “What should I do if I got a letter about suspended pension debt?:”
“In June 2022, we (the VA) fixed a data problem at the VA related to a Social Security Administration (SSA) income verification match program. Using the corrected data, we (the VA) found that some veterans and survivors had VA debt from pension overpayments.
“In March 2024, we (the VA) decided not to collect pension debts related to this June 2022 income verification match.
“If you (a veteran) got a letter from us (the VA) about your pension debt being suspended for review, we (the VA) will send you another letter with your updated balance. Here’s what to do:
- If your balance is now zero, you (the Veteran) don’t need to do anything.
- If you (the veteran) have a remaining balance, call us (the VA) at 800-827-0648 (TTY: 711). We (the VA) are here Monday through Friday, 7:30 a.m. to 7 p.m. ET. We (the VA) will help you learn about your options for debt relief.
- If you have already made payments on this pension debt, we (the VA) will refund your (the Veteran’s) payments. You (the Veteran) don’t need to do anything to get the refund.”
Use a Veterans Service Officer (VSO)
If you want to become an expert on “VA Debt Management,” you should ask your local VA-accredited Veterans Service Officer (VSO) for help. Learn more at https://bit.ly/3WwDXmN and https://bit.ly/3qbLVSL and The Island News article of 30 August 2023 at https://bit.ly/3WOhSBw.
Become a debt management expert
Veterans who want to become experts in managing their VA debts should also read the information at the following VA websites:
1. VA debt management. The VA website https://bit.ly/46ASJxB allows you to manage your VA debt online and answers 16 important questions about managing debt related to VA disability compensation, non-service-connected pension, and education benefits. Learn why you may owe the VA money, how to check your balance, and find out how to repay your debt now or request help with payments at this website.
2. Manage your VA debt for benefit overpayments and copay bills. At this website https://www.va.gov/manage-va-debt/, veterans can review their current VA benefit debt or copay bill balances, find out how to make payments or request help. Veterans can make payments online using this website or by phone, mail, or in person. For questions about overpayments, call the “VA Debt Management Center” at 800-827-0648 (TTY: 711). Outside the U.S., call 612-713-6415. Monday through Friday, 7:30 a.m. to 7:00 p.m. Eastern Time. For questions about copay bills, call the VA’s Health Resource Center at 866-400-1238 (TTY: 711) Monday through Friday, 8 a.m. to 8 p.m. ET.
3. What should I do if I get a letter about suspended pension debt? This website, https://bit.ly/4fA1ax0, answers the what-to-do question. The site links to the VA Benefits for Family Members and Caregivers webpage at https://bit.ly/3A7OQUy and the VA Pension Benefits webpage at https://www.va.gov/pension/.
4. Current VA health care copay rates. This website, https://bit.ly/3N9vBP8, covers new policies on Mental Health copay exemptions, Urgent care copay rates, Outpatient care copay rates, Inpatient copay rates, Medication copay rates, Geriatric and Extended care copay rates, Services that do not require a copay, and Past rates. This site links to:
· Pay Your Copay Bill: https://bit.ly/3LRSKUg,
· Your Healthcare Costs: https://bit.ly/3N9QQjI, and
· Copayments for Maternity Care: https://bit.ly/3ne3jbL.
5. Search resources and support articles/all of VA.gov (helpful VA phone numbers). This website is https://bit.ly/44xIyHq. Use the above webpage and https://www.va.gov/find-locations to find any VA location and helpful VA Phone numbers.
6. Request VA financial hardship assistance. This website, https://bit.ly/3AfQaoI, covers how to request help with current VA copay bills or an exemption from future copays.
7. Waivers for VA benefit debt. This website, https://bit.ly/4c9gwG9, explains how waivers work, time limits, how to request, and more.
8. Request help with VA debt for overpayments and copay bills. This website, https://bit.ly/3WPhDpX, covers how to use VA Form 5655 to request help.
9. Review and pay your VA copay bill. This website, https://bit.ly/46wiJtX, covers reviewing your bills, making payments, requesting financial help, disputing charges, understanding your statement, what happens if you do not pay, what you should do if you receive a bill from your approved non-VA community provider, and more. This website links to:
- VA’s Current Co-Pay Rates and Your Health Care Costs VA webpages;
- VA Healthcare and Other Insurance VA webpage: https://bit.ly/3AdXfWL;
- The Pay.gov site: https://bit.ly/3SD8UVv, and
- The VA Video “Veteran Copayments:” https://bit.ly/3N4i9fn.
10. Dispute your VA Copay Charges website. This website, https://bit.ly/3SGqF67 explains how to dispute VA copay charges by phone, mail, or in person, the VA debt collection process, the right to get legal representation, and more. The site has links to:
- Your Health Care Costs webpage, https://bit.ly/3N9QQjI;
- How to update your “VA Health Benefits Information webpage, https://bit.ly/3YyQx7Y;
- Current VA Co-Pay Rates” webpage, https://bit.ly/3N9vBP8; and
- The “Request Financial Assistance” webpage, https://bit.ly/3AfQaoI.
Continued next week.
Larry Dandridge is a Vietnam War wounded warrior, disabled veteran, ex-Enlisted Infantryman, ex-Warrant Officer Pilot, and retired Lt. Colonel. He is a past Veterans Service Officer, a Patient Adviser at the RHJ VA Hospital, the Fisher House Charleston Good Will Ambassador, and the VP for Veteran Affairs for the local Army Association Chapter. Larry is the author of the award-winning book Blades of Thunder and a contributing free-lance writer with the Island News. Contact him at LDandridge@earthlink.net or 843-276-7164.
