See the decision in Kisor v. Advantage 2000 Consultants, No. 10-1045-WEB (D. Kan. June 30, 2011), concerning a non-attorney group (Advantage 2000) hired by an administrator of a long term disability insurance (LTD) carrier (CIGNA) to represent a disabled person before Social Security and also to collect money from that disabled person if he was approved for disability benefits by Social Security. The Plaintiff's case was based upon provisions of the Kansas Consumer Protection Act. The Court held that the lawsuit was barred by federal pre-emption but that the Plaintiff could amend his complaint. It is unclear what the effect of that amendment would be.
There is some interesting information in the order about the relationship between the insurer, CIGNA and Advantage 2000:
CIGNA pays A2K a flat fee for its social security representation services, and a contingency fee equal to an undisclosed percentage of the actual dollar amount repaid by A2K’s Social Security clients to CIGNA as a result of A2K’s COR services. A2K and CIGNA agreed that A2K would not disclose to its Social Security clients any information about how A2K is paid. ...A2K’s Benefit Coordinator bonus program (“Bonus Program”) pays commissions to A2 Benefit Coordinators based upon the recovery of money from A2K’s Social Security clients for A2K’s LTD clients.
2 comments:
At least in my state, and I'm sure in most jurisdictions, an attorney would be barred from working for two such clients with disparate, even contradictory, interests. This is one more reason that non-attorneys should not be permitted to play lawyer representing clients in Social Security administrative appeals. Who is regulating these non-attorneys and watching out for their clients? If you think Social Security cares, think again.
Agreed, SSA should take action against such third-party representatives, so-called representatives.
Also, how do they get paid without an approved fee agreement. This idea that my cousin can pay the attorney, without SSA supervision and approval, is just a dodge.
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