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section are:

a) Pensions;

b) Compensation;

c) Educational Assistance;

d) Aid and Attendance Allowance;

e) Housebound Allowance;

f) Clothing Allowance;

g) Payment Adjustment for Unusual Medical Expenses;

h) Payments to Vietnam Veterans’ children with Spina Bifida; and

i) Insurance Payments.

B. The Utilization of Benefits provision applies to most VA income.

1. VA Aid and Attendance (A&A) is not a required benefit under the Utilization of Benefits Provision. The potentially-eligible client must be advised to apply for A&A, but there is no penalty for failing to apply when it is the only benefit involved.

C. Treatment of VA payments for SSI/Medicaid purposes depends on the nature of the payments and is included in the discussion of each type of VA income.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 7.12: VA Pension Payments.

A. The following is information about VA pensions:

1. Pension payments are based on a combination of service, an age of 65 or over and a nonservice-connected disability or death.

2 All VA pension payments are based on need, except those noted later under this rule.

3. VA may consider dependents’ needs in determining a pension; however, normally VA will not make a pension payment directly to a dependent during the lifetime of the veteran. Instead, the amount of the veteran’s basic pension is increased if the veteran has dependents.

4. When computing some needs-based pension payments, VA deducts unusual medical