Blog

My prior post, Determining the Maximum Allowable Pension Rate: Part I, outlined the maximum monthly benefit amount for a veteran with a spouse, a single veteran, or a single surviving spouse of a veteran; and the rating of the particular claimant.  As most VA practitioners know, the VA pension benefit will range from zero dollars up to the category's maximum allowable pension rate ("MAPR").  However, I did not go into detail as to the calculations used to determine the anticipated pension rate for a potential claimant.

The VA "Income Test" states that the household income of the claimant cannot exceed the MAPR for the applicable category.  Many are familiar with the term IVAP, or "income for VA purposes."  For VA purposes, income includes just about anything that the veteran or the veteran's spouse in the household receives in the form of payment - unless specifically excluded or deductible by regulation.  The most popular deduction of income is unreimbursed medical expenses paid by the claimant.  Unreimbursed medical expenses are expenses not covered by Medicare, or any other health insurance plan.  Unreimbursed medical expenses may include, but are not limited to: doctor and dentist bills, prescription glasses, hearing aids, Medicare premiums, prescription drug costs, health insurance premiums and co-payments, transportation to health care providers, durable medical equipment, and invoices from professional home health care agencies, assisted living facilities, and nursing home facilities.

   Gross Income
-  Unreimbursed Medicaid Expenses
   IVAP

The primary goal is to possess an IVAP of zero dollars or less.  If this is the case, the claimant is eligible for the applicable MAPR - as provided in my prior post.  For every dollar greater than zero, the MAPR is reduced dollar for dollar until the claimant is no longer entitled for a VA benefit.  Finally, if the calculated IVAP is greater than the applicable MAPR, the claimant is not eligible for benefits.

IVAP < $0                         =    Claimant is entitled to the full MAPR
IVAP > $0 but < MAPR    =    Claimant is entitled to the MAPR less the IVAP
IVAP > MAPR                   =    Claimant is not entitled to the VA benefit

Case Facts #1.
For example, assume a single veteran in need of aid and attendance has monthly unreimbursed medical expenses of $3,500 and monthly income from social security and pension of $1,500.  The veteran's IVAP is ($2,000).  With an IVAP less than zero, the veteran is entitled to the full MAPR of $1,644.  Assuming the same set of facts applied to a single surviving spouse of a veteran in need of aid and attendance, he/she would be entitled to the full MAPR of $1,056.

Case Facts #2.
Assume now the single veteran only has monthly unreimbursed medical expenses of $500 and monthly income from social security and pension of $1,500.  The veteran's IVAP is $1,000.  With an IVAP greater than zero, the MAPR of $1,644 is reduced by the IVAP.  In this case, the veteran is entitled to $644 ($1,644 - $1,000).  A single surviving spouse of a veteran in need of aid and attendance would be entitled to $56 ($1,056 - $1,000).

Case Facts #3.
Finally, assume the single veteran has monthly unreimbursed medical expenses of $500 and monthly income from social security and pension of $2,500.  The veteran's IVAP is $2,000.  With the IVAP exceeding the MAPR of $1,644, the veteran is not entitled to a VA benefit.