RRR Veterans Administration (VA) Benefits

 

 

 

Revised 08/16/2019

Policy

The Veterans Administration (VA) has numerous programs providing payments to veterans and their dependents. The most common types of VA payments are detailed in this section, but this list does not include all possible VA benefit types. 

NOTE          VA benefits are not the same as military retirement pay.  See MA606TT for military retirement pay.

 

For MAGI programs, VA benefits are excluded as income. 

For the non-MAGI programs, how VA benefits are counted depends on the type of payment.  See the table below for details:

If...

Then the treatment is...

VA Compensation

Counted as unearned income.

NOTE          Compensation payments made to a veteran, or the veteran’s spouse or child are not based on need.  Compensation payments made to the parents of a veteran based on a service-connected death are based on need.

Increase for dependents

Excluded as income to the veteran.

Excluded as income to the veteran and the dependent when paid directly to the veteran who is NOT living with the dependent.

Counted as unearned income to the dependent when paid:

·         Directly to the veteran for a dependent who resides in the home with the veteran; or

·         By a separate check to the dependent (an apportionment)

NOTE          When the customer is the dependent, the customer must ask that the VA pay the benefit directly to him or her. 

Increase for unusual medical expenses

Excluded.

VA Pension

Counted as unearned income. 

NOTE          Most VA pension payments are based on need, except for VA pension payments due to a Medal of Honor or a special act of Congress.

VA Reduced Pension ($90)

Excluded.

Aid and Attendance and Housebound allowances

Excluded.

VA Clothing allowance

Excluded.

VA Caregivers Payments

Excluded as income to the veteran.

Counted as unearned income to the caregiver.

 

Definitions

Term

Definition

VA Aid and Attendance and Housebound Allowance

An allowance paid to veterans, spouses of disabled veterans and surviving spouses who are in regular need of the aid and attendance of another person or who are housebound.  Increases in VA benefits for aid and attendance or housebound allowances are included in the pension or compensation payment.

VA Pension

Payments made on the basis of a combination of service and an age of 65 or over, a non service-connected disability or death.

VA Reduced Pension

The VA may reduce the VA benefit to a maximum of $90.00 per month for veterans or surviving spouses of veterans who meet all three of the following criteria:

·         Resides in a certified nursing facility other than the Arizona State Veteran Home;

·         Is receiving ALTCS; and

·         Has no spouse or dependents.

VA Clothing Allowance

A lump sum allowance is paid in August of each year to a veteran with a service-connected disability who uses a prosthetic or orthopedic appliance, including a wheelchair.  The clothing allowance is intended to help pay the increased cost of clothing due to the wear and tear caused by the appliances.

VA Increase for Dependents

A VA payment to a veteran or a veteran’s surviving spouse that is increased because of a dependent.  Pensions, compensation, and educational benefits can all be increased for dependents.

·         An augmented benefit, which includes a portion for the dependent, is issued as part of the veteran’s or surviving spouse’s payment.

·         Payment of the dependent’s portion by a separate check directly to the dependent is an apportionment.

VA Increases for Unusual Medical Expenses

The VA considers unusual medical expenses when determining some needs-based pension and compensation payments.  

Unusual medical expenses may result in a lump sum payment, an increase in the ongoing VA pension or compensation payment, or both.

VA Caregiver Payment

Payments made to a  family member for providing caregiver services to a veteran who has:

·         Been medically discharged from service;

·         A serious injury that was aggravated in the line of duty on or after September 11, 2001;

·         Need of personal care because of the inability to perform one or more activities of daily living; and

·         Been Enrolled in VA Health Services

 

Proof

Income is first obtained through the Federal and State Data Services Hubs.  If needed, other proof includes:

·         Benefit pay stub benefit explanation if it lists the types of benefits included in the gross payment;

·         Letter from the VA;

·         A Request for Verification of VA Information (DE-210) form completed by the VA.

 

Legal Authority

This requirement applies to the following programs:

Program

Legal Authorities

ALTCS

SSI-MAO

Medicare Savings Program

42 USC 1382a(2)(B)

20 CFR 416.1103(b)(1)

20 CFR 416.1121(a)

Adult

Caretaker Relative

Pregnant Woman

Child

KidsCare

42 CFR 435.603

42 CFR 457.10, 300, 301 and 315