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Title 8: Medicaid Page 58 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Non-MAGI-Related Veterans Affairs Payments Revised April 11, 2025 Compensation Payment  What is the net monthly amount?  Are there any deductions? If so, list type and amount.  Are dependent benefits included? If so, how much?  What portion is attributed to Aid and Attendance?  What would the benefit be with Unusual Medical Expenses (UME)?  What would the benefit be without UME? Note: Refer to NJA0094, Income for the process to enter VA income in ELIAS. Compensation Payment Legal reference: 20 CFR 416.1121 A VA compensation payment is based on a service-connected disability or death and may be based on need. Count as unearned income any portion not attributable to aid and attendance or unusual medical expenses. The portion of a VA compensation payment that is for VA aid and attendance and housebound allowance or is attributable to unusual medical expenses is not considered income. See Aid and Attendance and Housebound Allowance and Payment Adjustment for Unusual Medical Expenses. The portion of VA compensation that is due to a dependent’s needs is called an augmented payment and is usually counted as income to the dependent. See Payments for Dependents. A VA compensation or pension payment may also contain any of the other VA benefit types. Make sure to verify what is included in the VA compensation or pension payment. Verify what types of benefits are included in the VA payment. Pension Payments Legal reference: 20 CFR 416.1121 A Veterans Affairs (VA) pension payment is a combination of service and non- service-connected disability or death payment and is commonly based on need. Count as unearned income any portion of the VA pension payment that is not attributable to aid and attendance or unusual medical expenses. Exception: A veteran (or the surviving spouse of a veteran) who does not have a spouse or dependent and is entitled to a VA pension may receive a $90 income exclusion after entering a medical institution.