Veterans benefits for seniors

In this article I begin a discussion of the various programs available for qualifying veterans and their spouses.

Veterans are eligible for disability benefits, called "compensation," for service-connected disability. Nonservice-connected benefits are called "pensions." A veteran cannot simultaneously receive both compensation and a pension, even if eligible for both. Compensation and pensions are also available to spouses and dependents.

Compensation:

Honorably discharged veterans can obtain compensation for disability incurred "in the line of duty." The injury need not have occurred in combat. For example, a soldier injured during recreational sports while in the armed services is eligible. A pre-existing disability can be considered qualifying if the condition was aggravated during service in the military. Once the service connection is established, compensation benefits are paid according to the person's individual level of disability.

Eligible spouses and dependents of a veteran who has a disability of at least 30 percent are eligible for additional compensation benefits. Veterans with extreme disabilities, including those who are housebound, or who need regular aid and assistance, are eligible for supplemental benefits. These payments are collectively known as Special Monthly Compensation (SMC).

Pensions:

Compensation is based solely on a service-connected disability or death. By contrast, veterans' pensions are based on need and are designed to supplement the income of disabled veterans. Though pension benefits are lower than compensation benefits, eligibility does not depend on the disability being service-connected.

Because the pension programs are need-based, the Veterans Administration requires all applicants and recipients to file an annual Eligibility Verification Report (EVR). Both net worth and income are considered when determining pension eligibility. The VA establishes a Maximum Annual Pension Rate (MAPR) that is used to determine the threshold of countable income. If a claimant's countable income exceeds the MAPR, pension benefits are denied. Eligibility criteria also differs for persons under age 55 and those older than 55. Surviving spouses and dependent children are also eligible for pension benefits.

One of the pension benefits available for qualifying veterans is Aid and Attendance, a benefit that can pay for home care or nursing home care. In previous articles I have discussed the asset and income eligibility qualifications for Medicaid funding for nursing home care. Although both the Medicaid system and the VA system employ asset and income screening for applicants, the screening criteria are not identical. A person may be eligible for the VA program but not the Medicaid program, or vice versa. Additionally, Idaho Medicaid requires that applicants who are eligible for VA programs first apply for VA benefits.

James Bendell practices law at the Grupp Law Firm in Coeur d'Alene and is a member of the National Academy of Elder Law Attorneys.