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Title 8: Medicaid Page 61 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Non-MAGI-Related Veterans Affairs Payments Revised April 11, 2025 Payments for Dependents The portion of a VA payment that is augmented because of a dependent is income to the dependent, not the veteran. Exception: Count an augmented payment as income of the veteran or surviving spouse if all the following criteria are met:  The dependent lives apart from the veteran or surviving spouse, and  The dependent applies to have the augmented payment paid to the dependent separately from the veterans payment (apportionment), and  The VA denies the dependent’s request for separate payment, and  The veteran or surviving spouse does not send the augmented benefit to the dependent. If the VA denies apportionment and the veteran makes no payment to the dependent, count the augmented benefit as the veteran’s income the month following the month of the VA’s response. If the client is a veteran or surviving spouse receiving a VA payment, and the client has a living spouse, dependent parent, child, or disabled adult child, verify whether any of the VA benefit is augmented. If the client indicates that the VA payment is not augmented (or does not know) and alleges no living spouse, dependent parent, child, or disabled adult child, assume that the benefit is not augmented. If the client is a child or spouse living with a veteran receiving a VA payment, determine whether any of the VA payment is augmented and is income to the client. If the client is a child or spouse living apart from a veteran who receives VA payments, determine whether any of the VA payment is augmented and is income to the client. Ask if the client receives any payments directly from the VA (i.e., by apportionment) or through the veteran. If a surviving spouse or a child or spouse living apart from the veteran alleges that the augmentation amount was not given, ask if apportionment has been requested. If the dependent has already requested apportionment, obtain a copy of the VA response. If the dependent has not applied for apportionment, refer the dependent to the appropriate VA office. Explain that the augmentation amount will continue to be considered the dependent’s income unless the VA refuses to make the payment to the dependent by apportionment.