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A. 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:

1. Vietnam veterans’ children for any disability resulting from spina bifida;

2. Korea service veterans’ children for any disability resulting from spina bifida;

3. Women Vietnam veterans’ children for certain birth defects.

B. The payments are treated as follows:

1. They are excluded from income and resources.

2. The interest earned on unspent funds is excluded effective July 2004.

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

Rule 7.18: VA Aid and Attendance and Housebound Allowances.

A. VA Aid and Attendance and Housebound Allowances are not counted as income for eligibility purposes and must be excluded from the total VA payment when determining eligibility.

1. In addition, these payments are not considered third party payments.

B. Anyone in a nursing home who receives VA is potentially eligible for VA Aid and Attendance, except:

1. Individuals drawing a “child’s” benefit, i.e., those who became disabled prior to age 18 and draw a child’s benefit into adult years, are not eligible for Aid and Attendance.

2. Someone drawing only VA Insurance benefits is not eligible for Aid and Attendance.

a) Individuals who draw a VA Insurance benefit usually also receive a DIC benefit and are potentially eligible for Aid and Attendance.

b) However, it is possible for someone to draw only the VA Insurance payment. If the person draws only VA Insurance benefits, that person is not eligible for Aid and Attendance.

C. A nursing home applicant potentially eligible for VA Aid and Attendance must be advised in writing to apply for the payment. However, the penalty for failure to apply for the benefit is not applicable when the only benefit involved is VA Aid and Attendance.

D. The income of an ineligible spouse or parent who receives income based on need is not