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a. Pension: DO NOT DEEM VA PENSION IN PLA BUDGETING (Refer to MA-2260, Financial Eligibility Requirements-Private Living Arrangement). Veterans Pension, except Reduced Improved Pension, is countable unearned income to the individual in either PLA or LTC.

1) In PLA budgeting, do not give the $20.00 general exclusion to an individual who has VA pension unless he has other sources of income (e.g., Social Security).

2) In Step II of long-term care budgeting do not give the $20.00 general exclusion to any unearned income. Allow only a personal needs allowance (PNA). (Refer to MA-2270, Long-term Care Need and Budgeting for PNA).

b. Compensation: Countable unearned income to the individual. (The $20 general exclusion may be applied).

If the a/b is a veteran receiving compensation because his disability is service-connected, his VA payment will be based on his percentage of disability. An individual who is in a nursing home is considered to have a 100% disability. (An individual can be classified as disabled with as little as a 10% disability. Therefore, disability determination by VA does not meet disability requirements for Medicaid purposes). Compensation to a disabled veteran is not reduced by other income.

c. Parent Disability and Indemnity Compensation, DIC:

1) Countable unearned income to the parent. The $20 general exclusion may be applied.

2) If a/b’s adult child died in service or died of a service-connected disability, the a/b may be eligible for Disability and Indemnity Compensation (DIC). The amount of the VA payment may be reduced by his other income if he is in a private living arrangement. However, if he is in a nursing home, he should be eligible for the maximum payment.

d. Surviving Dependent DIC:

1) Countable unearned income to the individual. (The $20 general exclusion may be applied)