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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |61 Effective Month: July 2025 200A.07.09F VA CLOTHING ALLOWANCE A lump sum clothing allowance is payable in August of each year to a veteran with a service-connected disability for which a prosthetic or orthopedic appliance, including a wheelchair, is used. The allowance is intended to help defray the increased cost of clothing due to wear and tear caused by the use of such appliances. A VA clothing allowance is not income for eligibility or Medicaid Income purposes. 200A.07.09G PAYMENTS TO VETERANS’ CHILDREN WITH CERTAIN BIRTH DEFECTS These VA payments are made to, or on behalf of, the natural children of veterans, regardless of age or marital status, who are in the following categories: • Vietnam veterans’ children for any disability resulting from spina bifida. • Korea service veterans’ children for any disability resulting from spina bifida. • Women Vietnam veterans’ children for certain birth defects. These payments are excluded from income and resources. The interest earned on unspent funds is excluded effective July 2004. NOTE: While individuals receiving these payments are children of veterans, many would not meet the SSI definition of "child". They may be applicants/recipients and/or have spouses or children who are applicants/recipients. 200A.07.09H DEEMING RULES FOR VA PENSION AND COMPENSATION PAYMENTS WITH AND WITHOUT A&A AND UME Under the deeming provision, the income of an ineligible spouse or parent who receives income based on need is not deemed to an eligible spouse or child in at- home cases. Needs-based pension and needs-based compensation payments are non- deemable along with any other income of the ineligible. However, if an ineligible spouse or parent receives a VA payment that is solely attributed to UME, the receipt of such payment will result in deeming the remaining income of the ineligible to the eligible. For example, if an ineligible spouse receives Social Security and VA that is attributed solely to UME, the ineligible’s Social Security would be deemable to the eligible. However, if the ineligible receives a VA needs-based pension or needs-based compensation payment in addition to payment for UME, all income of the ineligible is non-deemable to the eligible person.