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Title 8: Medicaid Page 59 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Non-MAGI-Related Veterans Affairs Payments Revised April 11, 2025 Pension Payments Exclude $90 of the VA pension as income when determining eligibility and client participation, beginning the month after the month of entry into the institution. See 8-I, Veterans or Surviving Spouses of Veterans and Residents of Iowa Veterans Home. Any portion of the pension attributable to aid and attendance or housebound allowance is not considered income. In most cases, the portion of the VA pension 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 a VA pension that is attributable to a dependent’s needs is called 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. Aid and Attendance and Housebound Allowance Legal reference: 20 CFR 416.1103, 20 CFR 416.1121 VA pays an allowance to some 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. This allowance is combined with the person’s pension or compensation payment and is paid while the person is at home, in a medical institution, or (in rare circumstance) in a residential care facility. A payment for aid and attendance or housebound allowance is not income but is a third-party medical resource. When the reason an applicant receives aid and attendance or housebound allowance is for costs which the Medicaid program or State Supplementary Assistance program will be meeting (such as nursing facility or in-home health related care), deduct the aid and attendance or housebound allowance to determine the amount of the Medicaid or State Supplementary Assistance payment.