Offsetting the Cost of Assisted Living, Memory Care, or In-home Care
Many families are unaware of an important benefit available through the Department of Veterans Affairs to which their loved ones may be entitled. It is a pension program often referred to as Aid and Attendance, and it can help defray the costs of care for qualified veterans and their surviving spouses. McNair Dallas Law can help Veterans qualify for this program as quickly as possible.
Some key things to know about the Aid and Attendance benefit:
- Aid and Attendance is a pension benefit and is not dependent upon service-related injuries.
- Wartime veterans and their surviving spouses may be eligible.
- Certain medical and financial requirements must be met.
- Veterans Aid and Attendance benefits can help pay for care in the home, nursing home or assisted living facility.
The Application Process
The Application for Aid and Attendance Benefits is a complex and lengthy process. The forms are available for you to do this yourself, but be advised that if you apply and your application is denied, you must wait a year before you can reapply. For these reasons, many people seek assistance in completing the application. Note: It is illegal for anyone to charge you a fee to help complete the application or file for benefits.
The Aid and Attendance Benefit – How Much Could You Receive?
Did you know the cost of assisted living, nursing home or home health care can be substantial? In fact, an annual survey conducted by Genworth Financial found that in Dallas County, the median rate for a studio apartment in an assisted living community runs $4,195 per month (plus level of care charge), a semi-private nursing home room is $5,627 per month, and in-home care is $4,488 (44 hours per week).
Maximum Monthly Benefits*
The amounts below are the maximum benefit amount a veteran or surviving spouse may be entitled to for Aid & Attendance Pension in 2023.
- The maximum benefit amount for a veteran who does not have a spouse or dependent child is $2,229 / month.
- The maximum benefit amount for a married veteran is $2,642 / month.
- The maximum benefit amount for a surviving spouse is $1,433 / month.
*Note: these maximum benefit amounts may fluctuate and the actual benefit that is approved may be less.
Who is Eligible to Receive Aid and Attendance Benefits?
There are three aspects of eligibility – Service, Medical, and Financial.
Service. The basic service qualification is that the veteran must have served at least 90 days of active military duty, with at least one of those days during wartime (as defined by the Veteran’s Administration). Additionally, the veteran must have received a discharge that was other than dishonorable.
Medical. The veteran or surviving spouse must show that they require the “aid and attendance” of another person to perform the basic activities of daily living. The Veterans Administration defines the need for aid and attendance as:
- Requiring the aid of another person to perform personal functions required in everyday living, such as bathing, feeding, dressing, attending to the wants of nature, adjusting prosthetic devices or protecting himself/herself from the hazards of his/her daily environment, or
- Being blind or nearly blind, or
- Being bedridden, in that his/her disability or disabilities requires that he/she remain in bed apart from any prescribed course of convalescence or treatment, or
- Being a patient in a nursing home due to mental or physical incapacity.
Financial. The VA has established a Maximum Net Worth limit, which is adjusted annually. For 2023, the Net Worth limit is $150,538. Net Worth is calculated by adding the recurring income and countable assets, then subtracting the cost of care. If the total is less than $150,538, the applicant should qualify. If the total is above the Net Worth Limit, legal planning may be required.
How Can I Qualify for Aid and Attendance Benefits?
As with any government program, the rules governing eligibility are in a constant state of flux. Beware that some actions taken to qualify for VA benefits could create a penalty period, or perhaps even disqualify you entirely from receiving Medicaid benefits should they be needed. These actions include attempts to rearrange your income and/or assets to qualify.
Countable VA Aid and Attendance Income Requirements
Your “countable income” must be less than the Maximum Annual Pension Rate. In other words, a veteran or surviving spouse cannot have annual income greater than the maximum annual VA pension benefit amount he or she potentially can receive. Don’t forget that the income of both spouses is counted for married veterans.
So what does “countable income” include? It is simply all of the income a veteran or surviving spouse receives, regardless of source. These sources may include earnings from work, retirement and pension payments, social security, and social security disability payments. Nevertheless, “countable income” may be reduced by subtracting Unreimbursed Medical Expenses (UMEs) from annual income. What are some examples of UMEs? They include the cost of home health services, dentures, hearing aids, wheelchairs, premiums for health insurance, and even prescription drugs. Although UMEs may be deducted to lower countable income, increasing the pension benefit amount, it is not that simple. The calculations can be rather complicated.
Net Worth Requirements
Just like with “countable income,” the net worth of a veteran or a surviving spouse must be limited to be eligible. The net worth limit for 2023 is $150,538. Net worth includes savings and checking accounts, mutual funds, stocks, and vacation homes. Interestingly, your primary residence (and up to 2 acres of land) is not include in your assets when calculating your net worth for eligibility purposes.
We Can Help
What if you are service and medically eligible, but have too much income or too many assets to qualify? Do not give up. Contact McNair Dallas Law for assistance with the application process or to understand the various options that may be available to you as a veteran, or the surviving spouse of a veteran.