Posted by:  Katie May

On January 23, 2015, the U.S. Department of Veterans Affairs proposed a rule that “would establish new requirements pertaining to the evaluation of net worth and asset transfers for pension purposes and would identify those medical expenses that may be deducted from countable income for VA’s needs-based benefit programs.” This rule pertains to the Veterans’ Pension Benefit, including Aid and Attendance, which provides pension benefits to those Veterans or their surviving spouses who need the assistance of another for their daily living activities, or who otherwise qualify for Veteran’s pension benefits.

The rule incorporates a three-year look back period (similar to the five-year period imposed by the Medicaid program) on the transfer of assets, and also establishes a ten-year maximum penalty period and a clear net worth limit tied to the maximum community spouse resource allowance equal to that established for Medicaid purposes, currently $119,220.

We will continue to monitor the status of this proposal and provide updates as they are available.