The Veterans Pension is a tax-free monetary benefit payable to low-income wartime Veterans.

Veterans and survivors who are eligible for a VA pension and require the aid and attendance of another person, or are housebound, may be eligible for additional monetary payment. These benefits are paid in addition to monthly pension.

Refer to the U.S. Department of Veterans Affairs website for additional information.

Example 1: ADvantage Application

Mr. Parton applies for ADvantage. He receives RSDI of $700, a Veterans Pension of $800 and Aid and Attendance of $1300. The amount used for an attendant in the home is $1000. The total countable income would be $700 + $800 + $1300 – $1000 = $1800.

Note: For ADvantage we only count the portion of VA Aid & Attendance that is not used for an attendant. In this example, we count $300 as he receives $1300, but only uses $1000 for the care.

Example 2: Nursing Home Application

Mr. Parton later applies for nursing home care. He receives RSDI of $700,  a Veterans Pension of $800 and Aid & Attendance of $1300. The total income would be $700 + $800  = $1500. None of the Aid & Attendance of $1300 is countable for nursing home. The coding of the case for nursing home; that is the residence is coded as the nursing home will not count the Aid & Attendance. The income will not have to be diverted.

Only after client has been approved for Medicaid while residing in a nursing home should the VA pension and possibly Aid and Attendance be reduced to only $90.00. The reduced pension is considered income when determining if Medicaid Income Pension Trust (MIPT) is needed.

Example 3:

Mr. Rogers receives RSDI income in the amount of $1800, Employment Retirement benefit of $600 per month, and Reduced VA Pension of $90. The calculation to determine if Mr. Rogers needs an MIPT is as follows:

$1800 + $600 + $90 = $2490. An MIPT of $108 is needed as Mr. Rogers income is over the Categorically Needy Standard but under the Maximum monthly countable income standard for a MIPT.

Normally once the VA pension is reduced to $90 is when the MIPT needs dissolved.

Only after VA pension is reduced to $90.00 is the only time client will qualify to have $90.00 plus $75. This means they will be allowed a total monthly maintenance standard of $165 for those residing in a nursing facility or (Intermediate Care Facility / Intellectual Disability (ICF/ID).  If the VA pension has not been reduced to $90.00, the client is only allowed $75.00 for monthly maintenance standard.

If you have a reduced VA pension it must be coded as VA income block and as reduced pension and the computer will disregard it when it figures the vendor payment. Using the income from example 2, the reduced VA pension is coded in the Veteran’s Benefit block and Reduced Pension selected for the Indicator (PS2).

For persons who are receiving a Department Of Defense (DOD) pension, it is not reduced when the VA reduces the VA pension. The full amount from a DOD pension is considered countable income.