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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |54 Effective Month: July 2025 Unspent VA payments resulting from UME are resources if retained into the month following the month of receipt. 200A.07.09B VA COMPENSATION PAYMENTS VA pays compensation payments based on a service-connected disability or death. 1. Disability Compensation Veterans are eligible for disability compensation when they have disabilities that result from diseases or injuries incurred or aggravated during active military service. The disability compensation benefit amount is graduated according to the degree of a veteran’s disability on a scale from 10 to 100 percent (in increments of 10). VA disability compensation benefits are not based on need. 2. Surviving Spouse Dependency Indemnity Compensation (DIC) The VA provides monthly surviving spouses and surviving children of veterans who died during military service or after discharge from military service as a result of a service-connected disability. Surviving spouse DIC payments are not based on need. 3. Surviving Child DIC The VA provides monthly surviving child DIC payments to independent surviving children of veterans who died during military service or after discharge from military service as a result of a service-connected disability. Independent surviving child means one who is no longer in the custody of the surviving spouse of the deceased veteran who receives VA benefits on his/her own award. To be eligible, a child must be under age 18 or under age 23 if attending a VA-approved school or determined permanently incapable of self- support because of a disability before age 18. Surviving child DIC payments are not based on need. 4. Parents’ DIC The VA provides a needs-based monthly benefit to surviving parent(s) of a deceased veteran who death was service-connected. A surviving parent can be single, married to the deceased veteran’s other surviving parent, or remarried to the deceased veteran’s stepparent. To be eligible, the VA must determine the surviving parent(s) financially dependent on the deceased veteran. Parents’ DIC payments are income based on need.