When members of the U.S. military finish their service, they often leave with physical and mental disabilities. They are also guaranteed benefits, including healthcare coverage and other resources, in part to deal with those disabilities through the U.S. Department of Veterans Affairs.
Bridging the gap between the two is a lot of paperwork to prove their conditions and their eligibility.
For-profit veterans benefits consultants help former service members navigate the disability claim system for a fee – as opposed to free organizations that do the same, like the American Legion. In Kansas, the paid consultants operate in a legally gray area.
When lawmakers gavel in in January, veterans can expect two competing bills that may change that.
One would clear the way for for-profit veterans benefits consultants to charge veterans a fee to help file their disability claims. The other would essentially ban the practice.
Some veterans have reported being charged up to $20,000 for a service that, per federal law, should likely be free. Opponents to the companies view these fees as predatory, calling the consultants “claim sharks.”
Federal law says only accredited services — which are always free, like Veterans Service Organizations and the American Legion — can help file claims. The for-profit consultants are not accredited.
Last Statehouse session, the for-profit consultants sought to pass a bill that promised to put guardrails on the companies, but in actuality would have legitimized their practices on the state level.
One of those same groups poured thousands of dollars into Kansas campaigns this election season, signaling that they likely intend to reintroduce the bill.
Proponents of the bill promised Kansas legislators that their practices were legal, but months later, a federal judge disagreed.
While their practices may violate federal law, there are no criminal penalties attached, which creates a legal loophole.
The for-profit consultants argue that veterans deserve to have a choice between the paid service and the accredited free services that have faced steep criticism.
That bill barely failed last session, when the vast majority of legislators were Republicans who favored the bill. A few Republicans switched sides to support Democratic Gov. Laura Kelly’s veto, some after hearing from accredited consultants like Jim Karleskint.
Karleskint said if the Legislature passes a similar bill again this session, presumed Democratic Governor-elect Cindy Holscher would veto it — and without a Republican supermajority, the bill would likely stay dead.
The near-passage of the 2026 bill was an about-face from 2024, when lawmakers almost effectively banned the practice, joining the handful of states to crack down on paid consultants.
Rep. Mari-Lynn Poskin, a Leawood Democrat, wants to see a similar bill introduced this session. The 2024 bill, proposed by Karleskint, would prohibit anyone from receiving compensation for helping veterans file a disability claim.
Poskin said if she doesn’t introduce it, someone else will.
Campaign donations from for-profit consultant
The 2024 bill was vaporized after the vice chair of the Veterans and Military Committee didn’t vote in favor with Republican leadership on a tax bill that would’ve disproportionately benefited high earners. Legislation that he supported was suddenly removed from the House calendar.
The speaker of the House, in general, holds power over much of the House’s agenda.
Veteran Benefits Guide, one of the companies that helps a veteran file their disability claims for a fee, requested lawmakers introduce the bill that would’ve greenlit their practices. Last year, they donated $2,000 to House Speaker Dan Hawkins’ campaign. Hawkins has reached his term limit as speaker.
This election season, Veteran Benefits Guide donated $1,000 to Republican Rep. Chris Croft, who was among the contenders to be the next speaker. Croft lost his bid for reelection.
The group also donated $4,000 to Republican gubernatorial candidate Ty Masterson’s campaign, though he also lost. Masterson will return to his role as a state senator.
It donated $1,000 to Republican Rep. Shawn Chauncey, vice chair of the House Veteran and Military Committee last session. Chauncey won his election.
Each of the aforementioned Republicans voted in the for-profit companies’ favor in 2026.
Poskin was the ranking minority member of the House Veterans and Military Committee last session. She said she also took a campaign donation from Veteran Benefits Guide. She voted against the bill it favored.
“I would never impugn somebody else’s motives and what a donation is going to do for their consideration in their elected position, because I know in mine I vote with what’s right for my district and for veterans,” Poskin said.
The group also donated $2,000 to Republican Attorney General Kris Kobach’s campaign. If the greenlighting law were to pass, then face lawsuits like a similar one did in Louisiana, Kobach would’ve been expected to defend the law in court had he won his reelection. He lost to Democrat Chirs Mann.
Federal vs. State level
In 2006, Congress removed criminal penalties for violating the federal law that states only accredited agencies can help a veteran file a disability claim.
Kobach and 43 other state attorneys general signed on to a letter encouraging Congress to reinstate those penalties.
Multiple bills have been introduced on the congressional level to reinstate criminal penalties. After the federal judge’s order, U.S. senators and congresspeople introduced more attempts to criminalize the practice. Kansas U.S. Rep. Sharice Davids cosponsored one of those bills.
Veterans Guardian, another for-profit benefits navigation group, has spent millions lobbying on the federal level. A federal bill that would have legitimized the for-profit consultants’ practices advanced in the U.S. House last year.
After the company’s lobbying efforts in Kansas, a federal judge found that Veterans Guardian’s practices violate federal law. The company was recently ordered to pay some Veterans who used their service more than one billion dollars in damages.
The federal judge’s decision came after the Department of Veterans Affairs sent a slew of warning letters to for-profit consulting companies.
“It’s clear that these claim sharks are trying to make inroads in the state legislatures to legitimize their business procedures,” Poskin said.
Veteran Benefits Guide and Veterans Guardian did not respond to requests for comment by the time of publication.
Grace Hills reports on politics for the Kansas News Service. The Kansas News Service is a collaboration of KMUW, KCUR, Kansas Public Radio, KRPS and High Plains Public Radio. Kansas News Service stories and photos may be republished by news media at no cost with proper attribution and a link to ksnewsservice.org.
