Article by attorney, Debbie J. Papay, first found on First Local Toledo.
Speak up for March 24 Deadline!
On January 23, 2015, the VA quietly issued proposed changes to Title 38 of the Code of Federal Regulations
Part 3. These changes will adversely impact eligibility for the VA’s “Improved Pension” benefit, one that provides tax-free income to our honorably discharged, aging, wartime veterans, or their surviving spouses, in partial reimbursement for their high cost of medical care and help with the challenges of daily life as a senior.
To qualify for the Improved Pension, commonly called “Aid and Attendance,” or “A&A,” the claimant’s assets must be below certain limits. In its own “Regulatory Impact Analysis,” the VA’s Pension and Fiduciary Service estimates that approximately one percent of A&A applicants transfer some assets before filing their claims, which is currently a lawful act. The VA assumes these transfers are done to preserve inheritance, rather than the many other very real and frequent reasons, such as: efforts to preserve assets for future quality care of the first spouse to have health issues; to avoid current impoverishment of the healthier spouse and ensure quality care in the future when the second spouse also falls ill; to be able to freely choose a place of residence and live as independently as possible; to be able to privately pay as long as possible to avoid having to ever seek Medicaid assistance; to accomplish five-year Medicaid planning; to find savings alternatives to stock market risk or low interest CDs; to convert assets into a dependable monthly income stream for budgeting purposes; and to accomplish legal disability and estate planning.
In response to this one percent “problem,” the VA has proposed sweeping changes to apply to 100 percent of applicants for the A&A program, allowing only until March 24 for the public to react with comments. (Interestingly, although the VA has issued seven press releases to date since the January 23 proposal, none of them has announced this proposed rule or the comment period deadline.)
For the rest of the article, including information on the proposed changes and how you can voice your opinion before March 24, visit First Local Toledo.
