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Veterans Administration: VA Pensions to Medicaid Nursing Home Residents Should Be Reduced

HRD-87-111 Published: Jul 10, 1987. Publicly Released: Aug 11, 1987.
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Highlights

GAO reviewed how Veterans Administration (VA) and Medicaid benefits interact to determine: (1) how many medical nursing home residents are receiving VA pensions; (2) how states apply these pensions toward the cost of care; (3) the effect of VA pensions on state and federal costs; and (4) how other needs-based programs adjust benefits for institutionalized recipients.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress should amend title 38 to require that the VA pension for veterans and their survivors who enter a nursing home under Medicaid be reduced. One way would be to amend title 38 to extend the VA pension reduction criteria that currently apply when the recipient is institutionalized in a VA-supported facility to cover recipients supported by Medicaid. Alternately, the reduction could be tailored to the personal needs allowance established by each state Medicaid agency.
Closed – Implemented
Committee staff supports this recommendation and will consider action during the cycle if the budget deficit worsens. Congress enacted the Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508) which reduced VA pensions to $90 a month for veterans without dependents who receive Medicaid-supported nursing home care.

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Topics

Eligibility criteriaFinancial managementHealth care cost controlNursing homesOffsets (accounting)Veterans pensionsMedicaidPensionsVeteransSupplemental security income