Mr Andrews used his appearance at the Royal Commission into Defence and Veteran Suicide on Wednesday to call for an Australia-wide plan on caring for former members of defence forces.
He pushed for a national body to make sure recommendations from the inquiry are followed through and for veterans' affairs to be on the agenda at national cabinet.
He described systems offered by the Department of Veterans Affairs as impregnable and challenging to navigate.
"For many veterans there is a sense that they are not believed, a sense that they are second guessed," Mr Andrews told the commission on Wednesday.
"That agencies that ought to be working for them are operating more like an insurance company, and not an especially good insurance company, than an agency that's there to provide support."
Mr Andrews is the first premier to address the commission, which was established in 2021 to examine how the system is failing Australian Defence Force members and veterans.
He said states did not have a clear picture of veterans in their populations as they can only access de-identified data through the 2021 census.
Mr Andrews called for an opt-in system that would give states simple details about veterans such as names and addresses so that officials could approach them to offer support.
Victoria recently introduced a Veterans Card, which offers a range of benefits including discounted car registration, and Mr Andrews said the program helped give a clearer picture of veterans in the community.
Royal commission chair Nick Kaldas has said at least 1600 Australian veterans died by suicide between 1997 and 2020, about 20 times those who died while on duty.
The inquiry previously heard there was a backlog of more than 30,000 veteran compensation claims made to the Department of Veteran Affairs.
After Melbourne hearings, the commission will shift to Sydney in November.
A final report is due to be handed down in mid-2024.
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