Page 42

42

deemed to an eligible in an at-home case. Needs-based pension and compensation payments are not deemable along with any other income of the ineligible.

1. However, if an ineligible spouse or child receives a VA payment that is attributed solely to A&A, the receipt of the payment will result in deeming of the remaining income of the ineligible to the eligible.

a) Example: If an ineligible spouse receives Social Security and VA that is attributed solely to A&A, 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 A&A, all income of the ineligible is non-deemable to the eligible person

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

Rule 7.19: VA Payment Adjustments for Unusual Medical Expenses (UME).

A. VA considers unusual medical expenses when determining some needs-based pension and compensation payments.

B. These VA payments resulting from unusual medical expenses are treated as follows:

1. They are not income for eligibility or Medicaid Income purposes.

2. These payments are considered as reimbursements for medical expenses or services that are excluded in the definition of income.

3. Any unspent VA payments resulting from unusual medical expenses are resources if retained into the calendar month following the month of receipt.

4. Prior to July 1, 1994, any VA increase or extra payment resulting from unusual medical expenses was income. The client was required to claim UME as part of the VA Improved Pension application process if UME would result in a higher benefit whether the client lived at home or in a nursing facility as part of the Utilization of Other Benefits provision.

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

Rule 7.20: Deeming VA Income.

A. 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.

B. The needs-based pension and needs-based compensation payments are non-deemable along with any other income of the ineligible.