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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |59 Effective Month: July 2025 200A.07.09E VA BENEFITS AND INSTITUTIONAL RULES 1. Reduction in VA Pension for Veterans and Surviving Spouses in Nursing Facilities Medicaid eligible veterans in nursing facilities without a dependent spouse or child and Medicaid eligible surviving spouses without a dependent child are subject to a maximum VA pension that can be paid of $90. The maximum payment is $90 but the payment can be less. The reduced pension is considered Aid and Attendance and is not countable as income for eligibility or Medicaid Income, which includes recipients eligible under an Income Trust. Federal law prohibits counting the reduced pension toward the veterans’ cost of care (Medicaid Income). The Personal Needs Allowance (PNA) for all recipients receiving a reduced pension is equal to the pension payment received, usually $90. If a veteran or surviving spouse is receiving a VA pension payment upon admission to a nursing facility, refer the individual to the VA to determine if their pension is subject to the $90 maximum. Set appropriate ticklers to check with the VA to determine the case action needed. For individuals who do not receive a VA pension upon admission to a nursing facility but who may be eligible for the reduced pension due to wartime service, a referral should be made to apply for the benefitsince it will result in the individual having a higher Personal Needs Allowance if they file for it. Make a referral to file for the reduced pension as appropriate. 2. IS/CS Cases with UME and/or A&A If the institutional client (IS) receives non-countable income from UME or A&A, the community spouse (CS) will be allowed to receive the IS’ payment attributable to UME or A&A in addition to the CS allocation amount computed in the Medicaid Income computation. If the CS is not entitled to Medicaid, the extra income will have no impact. However, if the CS is Medicaid-eligible at home, the income that represents the UME (or A&A) payable to the IS is income to the CS. UME (and A&A) is disregarded as income only to the one entitled to the payment. When it