Kansas welcomes for-profit veteran ‘claim sharks,’ bundling contentious policy with popular bills
Rep. Rick James, a Republican veteran from La Cygne, championed legislation to benefit for-profit businesses that help veterans process benefit claims in exchange for a cut of the benefits. The practice, which is at odds with federal law, is banned in other states because the same service is available for free. James, who received a donation from one of the for-profit businesses, is seen here during a Feb. 10, 2025, committee hearing. (Grace Hills/Kansas Reflector)
TOPEKA — For-profit “claim sharks” can continue to charge veterans for an otherwise free service in Kansas under a new law that regulates rather than bans the practice, despite opponents’ legal and ethical concerns with the bill.
The contentious legislation was bundled into a package of more favorable bills, which former Republican representative and current Veterans of Foreign Wars lobbyist Jim Karleskint said was a political maneuver to make it difficult for legislators to vote it down.
Veterans’ service caps dotted the hearing room earlier this year when opponents warned that allowing the for-profit claims consultants — who charge veterans to help navigate filing their disability claims with the U.S. Department of Veterans Affairs — is taking advantage of veterans and is legally questionable. The American Legion, Veterans of Foreign Wars, and veterans service officers provide the service for free.
The bill, House Bill 2214 in its original form, passed the House 81-43 — three votes shy of a veto-proof majority. A handful of Republicans voted with Democrats against the bill.
The House and Senate passed the bundled bill with veto-proof majorities Friday night, 85-38 and 33-7 respectively, sending it to the governor for consideration.
Karleskint said on the Kansas Reflector podcast that the for-profit companies take advantage of older veterans who are overwhelmed by the process with aggressive ads and exorbitant fees.
Opponents’ concerns over the legality of the bill came after a similar law in Louisiana was struck down because of a clash with federal law. Some states have banned the for-profit consultants, and Kansas considered doing the same two years ago.
The federal law that opponents point to reads: “No individual may act as an agent or attorney in the preparation, presentation, or prosecution of any claim,” unless they are accredited — like those who provide free services. After the initial claim is decided on, an accredited attorney or claims agent can charge veterans to review the claim for a reasonable fee.The for-profit consultants are not accredited.
After Kansas Reflector published an initial article about the bill, a spokeswoman from Veterans Guardian — a vocal proponent of the bill — told Kansas Reflector: “Veterans Guardian, and consultants like them, does not act as an agent or attorney on behalf of Veterans. VG helps the veteran prepare their claim and does not engage with the VA on behalf of the veteran. Therefore, any claim that the claims consults are acting illegally is not factually accurate.”
On the Kansas Reflector podcast, Karleskint disagreed.
“They complete it, and the veteran hits the enter key and that’s what puts it in place,” Karleskint said. “It’s a technicality, in my opinion.”
Veterans Guardian spokeswoman MaryGrace Lucas said “practices vary across firms, and it is misleading and inaccurate to portray that this is how the entire sector operates.”
Three proponents of the bill — including Veterans Guardian, in 2019 and 2024 — received a warning letter from the U.S. Department of Veterans Affairs that they “may be engaged in illegal activities, which include the unauthorized representation of claimants for VA benefits and charging them for your services.”
La Cygne Republican Rep. Rick James said he made sure the bill is constitutional.
Rep. Nathan Butler, a Republican from Junction City, said Friday he appreciates having the choice when filing his claims.
“I have been to both sides of it,” Butler said. “I’ve been to the veterans service organizations, where I’ve had to wait a month to get in and meet with someone who quickly goes through your file, prints it off, has you sign it, and sends it in.
“I’ve also used an agency. They worked with me for about a month, making sure I had all the documents I needed. They put everything together, they sent it for me to sign, and I sent it in myself.”
The bill was requested for introduction by Veteran Benefits Guide, a for-profit claims consultant who donated $2,000 to House Speaker Dan Hawkins’ campaign and $750 to James’ campaign. James chairs the House Veterans and Military Committee.
Rep. Mari-Lynn Poskin, seen during a Jan. 28, 2026, debate in the House, said the “claim sharks” bill was bundled with “good bills” so that members would feel compelled to vote for the bundle. (Photo by Sherman Smith/Kansas Reflector)
The bundle
HB 2214 — the for-profit claims consultant bill — was never heard by the Senate after it passed the House. Instead, it was bundled Wednesday along with three other bills into House Bill 2626.
Every Senator voted for HB 2626 in its original form. It passed 118-4 in the House. The bill’s original scope would expand veterans preference in government employment to include current members of the National Guard and their eligible spouses.
Another bill bundled into HB 2626 is House Bill 2627, which will expand permissive preference in private employment to service members and eligible spouses. Both bills are aimed at making it easier for service members and their spouses to find employment in Kansas.
House Bill 2758, also bundled into HB 2626, will memorialize Kansas military forces killed in action with a kiosk displaying their names in the Capitol.
House Bill 2767 will establish a permanent Kansas military affairs commission to advocate for military installations. It will continue the work of the Governor’s Military Council, which exists through a series of executive orders. This bill codifies its existence, regardless of executive orders.
All of the bills had moved through the Legislature with little opposition, except for the one dealing with claims consultants.
HB 2214 allows for-profit claims consultants — nicknamed “claim sharks” by opponents who believe they charge outrageous fees for a service that should be free — to operate in Kansas while putting guardrails on the businesses.
The for-profit consultants can’t charge veterans more than a one-time fee of five times the monthly increase in benefits, or $12,500, whichever is less. They must disclose that the veterans can find the same service for free elsewhere, can’t use international call centers, promise an outcome, or use their personal login to access information about government benefits.
Karleskint said the contested bill was bundled with popular ones because it is more difficult for legislators to vote note.
Rep. Mari-Lynn Poskin, a Democrat from Leawood, agreed.
“I think they bundled it with good bills (so) that they can say you don’t support Veterans if you vote no on the bundle, even if you do so to protect them … in the words of 44 state Attorneys General, ‘from unaccredited predatory actors who seek to profit from veterans’ service and sacrifice with total disregard for the laws designed to protect those veterans and their benefits,’ ” Poskin wrote to Kansas Reflector.
She’s referring to a letter signed by Kansas Attorney General Kris Kobach and 43 others encouraging Congress to pass an act that would fine the unaccredited for-profit consultants for charging veterans to help file their claims.