Former Kansas legislator says veteran benefits ‘claim sharks’ won over GOP leadership with lobbying

Former Kansas Rep. Jim Karleskint, a Vietnam War veteran who now lobbies for Veterans of Foreign Wars, appears by Zoom for a recording of the Kansas Reflector podcast. He says lobbying by for-profit claim consultants paved the way for legislation that would allow them to charge a fee for helping veterans, a service others provide for free. (Screen capture by Grace Hills for Kansas Reflector)

TOPEKA — A bill that would greenlight unaccredited for-profit claim consultants to continue to skim benefits from Kansas veterans — likely in conflict with federal law — cleared the House and is working its way through the Senate, even though lawmakers considered banning the practice two years ago.

So why the switch-up?

Jim Karleskint, a former Republican representative from Tonganoxie and Vietnam War veteran who now lobbies for the Veterans of Foreign Wars, said the answer is a whole lot of lobbying and a favorable view from Statehouse leadership.

North Carolina-based for-profit consulting company Veterans Guardian, a vocal proponent of the bill, has spent more than $5 million lobbying at the federal level, and hundreds of thousands at the state level.

“There’s too much money involved,” Karleskint said on the Kansas Reflector podcast. “Individuals in leadership are supportive of this bill. And that makes a big difference.”

The for-profit consultants help veterans navigate the process of filing a claim with the U.S. Department of Veterans Affairs, which proponents of the bill say is tedious and confusing. In exchange for the help, the consultants charge veterans a fee.

The bill making its way through the Statehouse would put guardrails on the for-profit consultants the VFW calls “claim sharks.” The nickname comes from the VFW’s dislike of the fact these companies are charging veterans for a service that is provided for free through accredited services, like the VFW or the American Legion. Plus, Karleskint said, they cherry pick so that they only take on profitable and easy cases.

The guardrails in House Bill 2214 include that for-profit consultants:

• Can collect a one-time fee of no more than five times the monthly increase in benefits.
• Must disclose that veterans can find the same service for free from an accredited organization.
• Can’t use international call centers or promise an outcome.
• Can’t use a veteran’s personal login to access their medical, financial or government benefits information.

A bill Karleskint proposed in 2024 would have prohibited anyone from receiving compensation for helping veterans file a disability claim. Kansas Attorney General Kris Kobach and 43 other state attorneys general signed onto a letter encouraging congress to pass a similar act.

Federal law states “no individual may act as an agent or attorney in the preparation, presentation, or prosecution of any claim,” unless they’re accredited — like the free VFW or American Legion. Once the initial claim is decided on, an attorney or claims agent can charge a fee to review the claim.

Veterans Guardian and other for-profit consultants were sent warning letters from the U.S. Department of Veterans Affairs that their business may be illegal. Nearly all are still operating.

“Until they are sanctioned, they’re going to keep on doing it,” Karleskint said.

In an email to Kansas Reflector, a spokeswoman for Veterans Guardian said: “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.”

Karleskint said: “They complete it, and the veteran hits the enter key and that’s what puts it in place. It’s a technicality, in my opinion.”

Karleskint said his bill two years ago fell victim to political retaliation.

Former Republican Rep. Mike Dodson, a veteran from Manhattan and vice chair of the House Veterans and Military Committee, was a proponent of the bill. Dodson also was one of four Republicans who wouldn’t vote to override Democratic Gov. Laura Kelly’s veto of a flat income tax. Shortly after that vote, the bill was struck from the House calendar and never received consideration, despite clearing committee.

Karleskint testified in opposition of this year’s bill before the House Veterans and Military Committee in February, and attempted to Thursday before the Senate Select Committee on Veterans Affairs — but he was cut off because the committee ran out of time.

Nearly every proponent argued that veterans should have a choice between a free or paid service. Karleskint said veterans don’t truly have a choice.

“If the for-profit would take all claims, maybe that might be true, but they don’t. They cherry-pick. They pick the ones where they’re going to make the most money. The tough ones, they’re not going to take,” Karleskint said. “If it’s an easy claim, yeah, they’ll have a choice. But if it’s not — or a cheap claim — they won’t have a choice.”

Karleskint said all claims go into the same line, whether they used a for-profit service or not.

“It’s the same sequence. It’s going to take one claim just as long as it does the other,” Karleskint said.

William Taylor, a founder of Veterans Guardian, testified before the House Veterans and Military Committee.

“We are running a 90% success rate with every veteran we work with gets some increase in their benefits, and our average decision timeline is 85 days, which is half of the national average,” Taylor said.

According to the VA, it takes 76.6 days on average to complete a claim. The VA says a factor is “how long it takes us to collect the evidence we need to decide your claim.”

Taylor said the company’s 90% success rate comes from helping the veterans fully develop claims. He said the company works extensively with veterans to ensure that everything necessary is prepared for the claim.

Karleskint said there’s not much of a difference in the service provided by a for-profit company or free accredited service.

“They probably hand hold the veteran more. And the others can, too,” Karleskint said. “When you’re going to make a great deal of money, you’ll probably push them a little more.”