Kansas Bill Faces Criticism Over Veteran Fees

Legislation passed by the Kansas House and Senate, originally introduced as House Bill 2214, regulates the operations of for-profit veteran claims consultants, but does not outright ban them. The bill is now awaiting the governor’s signature.

Concerns Over Exploitation and Fees

Opponents of the bill argue that it leaves veterans vulnerable to unnecessary and potentially exorbitant charges. They warn that veterans could end up paying thousands of dollars for assistance already provided at no cost by accredited veterans service organizations like the American Legion, Veterans of Foreign Wars, and county veterans service officers.

For-profit claims consultants often charge fees based on a veteran’s future benefit increases, meaning the total cost can significantly exceed initial expectations. Kevin Thompson, CEO of 9i Capital Group, stated, “The law allows for-profit entities to assist veterans in qualifying for disability benefits, services that are already available for free through the VA.”

Arguments for and Against the Bill

Supporters of the bill contend that the VA claims process is often complex and time-consuming, and private companies offer a valuable option for veterans seeking assistance. However, critics counter that charging for these services exploits veterans, especially older individuals struggling with paperwork.

Veterans Guardian, a proponent of the bill, clarified that they “help the veteran prepare their claim and does not engage with the VA on behalf of the veteran,” asserting that claims of illegal activity are inaccurate. Jim Karleskint, a former Republican state lawmaker and current VFW lobbyist, disagreed, stating that consultants effectively submit the claim with the veteran’s final action.

Legislative History

The Kansas House initially passed the bill 81-43, just short of a veto-proof majority. However, when combined with other legislation, both chambers subsequently approved the package with veto-proof margins, sending it to the governor.

Potential Impact on Veterans

Veterans advocates express concern that the bill will encourage aggressive marketing tactics and high fees tied to future benefit increases. They believe it could cost veterans thousands of dollars for services they could have received for free.

Thompson added, “There will inevitably be veterans who pay for services they could have received at no cost. That is the concern.” Concerns have also been raised about the potential for this model to spread, as states like Maine, New Jersey, and New York have resisted similar provisions.

Critics have sharply condemned the bill, labeling for-profit consultants as “claim sharks” and accusing lawmakers of enabling financial abuse of veterans. The bill’s passage could normalize a system that attracts more firms and potentially exploits vulnerable individuals.

The final decision now rests with the governor. If signed into law, Kansas will formally allow for-profit claims consultants to operate under state regulation, despite ongoing questions about legality and financial consequences for veterans.