Disabled veterans who need long-term care often face unique challenges when it comes to Medicaid eligibility. While Medicaid can help cover the high costs of nursing homes, in-home care and other services, veterans’ benefits can complicate the planning process.
Special strategies may be needed to help ensure that they receive the support they need without jeopardizing their eligibility. This is because of the ways in which veterans’ benefits are “counted” when determining Medicaid eligibility.
Primary considerations
Programs such as the VA’s Aid and Attendance can provide disabled vets with substantial monthly payments, which may push a veteran’s income above Medicaid’s limits. Without proper planning, this could result in the denial of benefits. Thankfully, a skilled legal team familiar with both VA and Medicaid rules can help structure income and assets in a way that meets eligibility requirements while preserving access to care.
It is additionally worth noting that Medicaid has strict limits on the value of assets a person can keep while still qualifying for assistance. Veterans who receive disability compensation or who have savings, investments or property may need to use trusts or other legal tools to ensure that they do not have to spend down their resources unnecessarily. The planning process must be tailored so it does not conflict with VA benefits rules.
Medicaid has a five-year look-back period during which certain asset transfers can trigger penalties. Disabled veterans who anticipate needing long-term care should plan well in advance – if possible – to avoid these penalties. This planning should account for both present needs and possible future changes in health or income.
Coordination between VA and Medicaid benefits can make a significant difference. Some veterans may qualify for both, and an experienced legal team can help ensure that benefits ultimately work together effectively. For example, certain Medicaid programs can cover services that VA benefits do not, and vice versa.
At the end of the day, disabled veterans should not assume that standard Medicaid planning strategies will work for them. Their combination of benefits and service-related entitlements requires a tailored approach.