V.A. Benefit for Aid and Attendance

Of all entitlements, the Special Monthly Pension with Aid and Attendance is by far our government's best kept secret. (Over 23 million Vets who could qualify, less than 150,000 actually receive this pension)  This benefit, often referred to as the V.A. Benefit for Aid & Attendance is actually a three tiered benefit, with aid & attendance being the top tier, a program to help pay for the assistance of an individual with one or more activities of daily living like bathing, dressing, toileting, driving to the doctor or needing help out of bed among other necessities.  To qualify for this pension, Veterans must be disabled, or age 65, served 90 days in active service with at least 1 day during a declared time of war. (WW 2, Korean, Vietnam and the Gulf War) 

How much can one receive?

Basic Pension (Tier 1)
Basic Pension is the first level of the Pension.  Once a veteran reaches the age of 65, the VA considers and classifies them permanently and totally disabled regardless of their physical fitness.  If their annual income is below the Pension Rates established by Congress (veteran alone must have countable income LESS than $16,037 per year. With spouse, countable income must be LESS than $21,001 per year) they can qualify for basic pension that will supplement their income. 

Countable income requirements for 2023: One’s “countable income” must be less than the Maximum Annual Pension Rate. In simple terms, a veteran or surviving spouse cannot have annual income greater than the maximum annual VA pension benefit amount they potentially can receive. When a veteran is married, their spouse’s income is also counted.  “Countable income” includes most income that a veteran or surviving spouse receives. Examples include earnings, retirement and pension payments, social security, and social security disability payments.  One’s “countable income” can be reduced by subtracting Unreimbursed Medical Expenses (UMEs) from their annual income. Examples of UMEs include the cost of home health services, dentures, hearing aids, wheelchairs, premiums for health insurance, and prescription drugs. For UMEs to be deducted, the total amount must be greater than 5% of the MAPR, and then, only the amount above 5% can be deducted.  For example, the MAPR for an unmarried veteran with no dependent children who is applying for the Basic Veterans Pension is $16,037, and 5% of this amount is $801. If the veteran has $1,001 in UMEs, $200 can be deducted from the countable income. After income calculations (deducting UMEs from MAPR), if one’s income is less than the MAPR, they are income eligible.

Housebound Pension (Tier 2)
Housebound is the 2nd level of Improved Pension.  The applicant is not as limited in their need for assistance as someone meeting the needs for Aid & Attendance. The claimant is substantially confined to a premise due to a disability or disabilities and is dependant upon another person for transportation.  The claimant would not be eligible if they drive a vehicle. Also, annual income must be below the Pension Rates established by Congress (veteran alone must have countable income LESS than $19,598 per year. With spouse, countable income must be LESS than $24,562 per year)

Aid and Attendance Pension (Tier 3)
Aid & Attendance is the highest level awarded to a veteran or surviving spouse who requires assistance with their daily living. Regarding asset and income qualifications, it's not how much income you have coming in, its how much you have going out for un-reimbursed medical expenses.  In addition, the actual cost of home health care, assisted living, or nursing homes plus any other out of pocket medically related expenses are used to arrive at a net income figure.  Annual income must be below the Pension Rates established by Congress (veteran alone must have countable income LESS than $26,752 per year. With spouse, countable income must be LESS than $31,714 per year)

A veteran's and/or spouse's countable income must be less than the pension amount for which they are eligible. 

Example: A surviving spouse (who's housebound) in 2023 is eligible for up to $13,147 in pension.  Her countable income is reduced by subtracting her Unreimbursed Medical Expenses (cost of home health services, Medicare premiums, copays, deductible's, over the counter supplies etc. amounting to an annual total of $14,000).  

5% of MAPR = $658.  $14,000 - $658 = $13,432 UME.

If her annual income before UME is $22,000 then her countable income becomes $8,568. ($22,000 - $13,432)  She would be eligible for about $4,579 in pension. ($13,147 - $8,568)

Net Worth / Assets Limits for Aid and Attendance and other Pensions

A veteran's net worth, according to the VA, includes assets in bank accounts, stocks, bonds, mutual funds and property other than their primary residence and vehicle.  A general guideline is that the veteran's combined assets plus annual income must be valued less than $150,000.  The final determination considers a veteran's age, care expenses and life expectancy.

Eligibility must be proven by filing the proper Veterans Administration (Form 21-534 surviving spouse) (Form 21-526 Veteran).  Accompanying the completed form: a copy of the DD-214, medical evaluation from a physician, current medical issues with out-of-pocket medical expenses along with net worth limitations and net income.  The veteran may appoint an individual or service organization to assist with their claim (Form 21-22a Appointment of Individual as Claimant's Representative) (Form 21-22 Appointment of Veterans Service Organization as Claimant's Representative).

For more information about the V.A. Benefit for Aid and Attendance just contact the Veterans Service Officer in your county or go to the VA website: www.va.gov

To contact a LTC insurance agent in Naperville, Illinois call 866-340-5697