How do VA Compensation or Pension benefits affect low-cost subsidized housing and/or Medicaid?
In general HUD and Medicaid follow the general rules for counting income as set out under Social Security rules. Income has two forms: earned income (such as from a job) and unearned income (such as SSI, VA Compensation or Pension benefits, etc.) All gross income is countable by HUD or Medicaid…with this one exception: direct reimbursement of medical expenses is excluded as income ( 24 CFR 5.609(c) (4).) The problem is when HUD or Medicaid ask the VA for the amount and type of your benefit, the VA provides the total amount of your award and does not break down the award into “income” and “medical expense reimbursement.” Our advice is before one makes initial application to HUD directly, for Section 8 assistance or applies for Medicaid, let CFEVR attorneys address the VA and ask them to provide evidence of how your award breaks-down into “income” and “medical expense reimbursement.” You can then submit that evidence to HUD or Medicaid which should reduce your countable gross income.
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