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The portion of the VA pension that is for A&A and UME is disregarded for Medicaid eligibility. Because Allan’s $883 monthly A&A allowance plus the $3,500 monthly UME amount that the VA considered is greater than the total pension amount, the entire pension amount is for A&A and UME and must be disregarded for Medicaid eligibility. $1,200 Social Security + $2,051 VA pension - $2,051 amount of VA pension for A&A/UME (disregarded) _________________________________________________ = $1,200 budgetable income 15.3.26.3 Patient Liability Calculation for State Veterans Home Residents Without Dependents For any veteran without a spouse or dependents (or for a surviving spouse without dependents) who resides at a State Veterans Home at King, Chippewa Falls, or Union Grove: • The portion of the VA pension that is an A&A or housebound allowance or is for UME is disregarded in the eligibility determination. • If the member receives a VA pension in an amount less than or equal to $90, the total pension amount is exempt for the patient liability calculation. • If the member receives a VA pension in an amount greater than $90, only $90 of the VA pension is exempt for the patient liability calculation. The portion of the VA pension that is an A&A or housebound allowance or is for UME is included when calculating patient liability. These special patient liability rules do not apply to State Veterans Home residents who have a spouse or other dependents. If a veteran or surviving spouse in a State Veterans Home has dependents and receives a VA benefit, for Medicaid eligibility and patient liability, disregard any amount of the VA benefit that is an A&A or housebound allowance or is for UME. Example 7 John is a single veteran with no dependents residing at the State Veterans Home at King. His total monthly income consists of a $90 VA pension and a $55 annuity payment. The $90 VA pension is totally disregarded for his Medicaid eligibility and patient liability calculation. John’s budgetable income is $55. After deducting the $55 personal needs allowance, he has a $0 patient liability.

Example 8 Scott is a single veteran with no dependents residing at the State Veterans Home at Chippewa Falls. His total monthly income consists of a $590 VA pension ($200 of which is for UME) and a $50 annuity payment. For his Medicaid eligibility determination, the $200 UME portion of his VA pension is disregarded. For his patient liability calculation, only $90 of the VA pension is disregarded. Eligibility Calculation $390 VA Pension ($590 gross VA pension – $200 UME) + $50 Annuity _________________________________________________ $440 gross countable income Patient Liability Calculation $440 gross countable income + $200 UME (counted) _________________________________ $640 adjusted gross income