The A&A program is a needs based program.Medicaid is a Federal and State needs based program – so the state you are in plays a part in how the Aid and Attendance Funds are handled. Most state’s should not include the A&A funds when determining if you are eligible for an Assisted Living Medicaid Program – Unfortunately, most state Medicaid works do not know that they are not supposed to include it. If you are receiving a pension as a single veteran and move into a facility and Medicaid pays for it, your award is reduced to $90 per month.That is because this is a needs based program and Medicaid is taking care of your needs.Medicaid may not count or take the $90 per month from the VA. If you are a married veteran and the spouse meets certain Hardship criteria, the monthly award will continue to the spouse.
Each state has their own Medicaid rules - including how funds received by veterans and their surviving spouses are viewed for Income and Asset testing. We are in the process of adding a page for each state to give you an overview of how your state views the VA Aid and Attendance Pension - but please check the regulations at the time you are applying for Medicaid as they may have changed since publication on this site.
Please Note: The Medicaid Act of 2006 increased Medicaid penalties for those trying to avoid paying long-term care expenses by gifting their assets to other family members.
Many annuity sellers have targeted seniors - particularly veterans to purchase annuities, which effectively give their assets away, to qualify for VA benefits. The annuity seller looks at the senior veteran as an annuity prospect, offering “free” services to the veteran. The truth is that the annuity seller is usually compensated by a commission of up to 12%. Often the veteran and family members trying to help do not fully understand the potential Medicaid penalty that is caused by certain asset transfers.
The annuity seller emphasizes that the resident can transfer assets with no Veterans Administration penalty - while the Medicaid penalty is either ignored or misrepresented. Medicaid penalizes any gifts within five years of an application for assistance. According to national assisted living statistics, 90% of senior assisted living residents will need full skilled nursing home care in less than three years. Resulting in the potential for cancellation fees to terminate the annuity or family members private paying the nursing home costs until the Medicaid “asset transfer penalty phase” has elapsed.
Please work with an experienced Elder Law Attorney who understands Medicaid, Veteran’s Benefits and your families wishes before making any decisions on Asset Transfers.
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Please note that we are not affiliated with the Veterans Administration, MassHealth or any government agency in anyway. Each agency alone makes the decision on each claimant's cases.
For representation before the VA, ERBC refers to Servaes Consulting Group, LLC so you can be assisted by a VA Accredited Agent.
Neither Elder Resource Benefits Consulting nor the Servaes Consulting Group, LLC is affiliated with the Department of Veterans Affairs or any other government agency. Elder Resource Benefits Consulting and the Servaes Consulting Group, LLC are not Veterans Services Organizations.