Important changes are coming that will impact Veterans and
their families who apply for the Aid and Attendance (AA) pension. Although the public comment period has
expired, it is not yet known when these changes will take effect. Some of the changes involve significant
departures from prior regulations and will require advanced planning before
applying for benefits. If you or a loved
one are considering applying, it is best to do so now before these new changes
commence.
One of the proposed changes involves new asset and income
limits in order to qualify for AA benefits.
The proposed net worth limits will track that of Medicaid, which is
$119,220.00 for 2016. Both income AND
assets will be added together when determining whether an applicant qualifies
for benefits. An important excluded
asset is a claimant’s home, provided it is a primary residence in a residential
lot not to exceed 2 acres. If the
primary residence is more than 2 acres, unless the additional acreage is not
marketable, the additional acreage could cause a claimant to be over assets and
disqualify him/her for benefits. In
addition, annuities and trusts are deemed “covered” assets, meaning the value
of them can be included in the asset/income calculation to disqualify a veteran
or spouse. Likely the most notable change involves the addition of a look
back period, similar to Medicaid.
However, the look back for the VA is three years (36 months), versus
five years for Medicaid. If there are
improper transfers during that period of time, the VA may impose up to a 10
year penalty period. Here, like with
Medicaid planning, careful attention must be paid to asset transfers within the
36 month look-back period because the VA has proposed a short window to remedy
an issue if a penalty is imposed.
In another proposed regulation that is similar to Medicaid,
provided a claimant meets all of the requirements to qualify for AA benefits, the
VA has proposed that all pension beneficiaries complete annual Eligibility
Verification Reports (EVR) to verify their income. This means that the VA will monitor
recipients of the pension benefit to ensure ongoing qualification
Lastly, the VA has proposed regulations that seek to define
covered medical expenses. To receive
reimbursement for custodial care the claimant must require either regular
assistance with two or more activities of daily living (ADL’s) or custodial
care and assistance because a mental disorder makes it unsafe for the veteran
or surviving spouse to be left alone.
ADL’s include bathing, showering, dressing, eating, toileting and
transferring. Payments to facilities
will only be paid if the primary reason for the veteran or surviving spouse to
be in the facility is to receive health
care services or custodial care
that the facility provides. If the care is not for health or custodial
care related services, it will not be considered an allowable medical
expense.
The above list is not exhaustive and only highlights some of
the proposed changes that the VA intends to implement. If you are thinking of applying for these
benefits or have questions, you should contact an experienced attorney to
assist you before these new regulations take effect.
If you have any questions about this or any Aid and
Attendance pension matter, contact the attorneys at Brown, Paindiris &
Scott at 860-659-0700 or klenda@bpslawyers.com.
