VA rule changes affect net worth, asset transfers, medical expenses and income deductions

2018-VA-Rule-changes-Whitepaper.png

On January 23, 2015, the Department of Veterans Affairs (VA) published a comprehensive set of rules that would amend 38 CFR Part 3. Part 3 covers net worth, asset transfers and income exclusions for needs-based benefits. The stated purpose of the proposed change was to “maintain the integrity of the pension program and to implement recent statutory changes” and to “respond to recent recommendations made by the Government Accountability Office (GAO), to maintain the integrity of VA’s needs-based benefit programs, and to clarify and address issues necessary for the consistent adjudication of pension and parents’ dependency and indemnity compensation claims.”

On September 18, 2018, the VA published its final rules. While retaining the lookback and penalty period, the final rules addressed some inconsistencies and some unfair provisions contained in the original proposed rules.

The stated purpose of the final rules remained the same: “maintain the integrity of the pension program and to implement recent statutory changes” and to “respond to recent recommendations made by the Government Accountability Office (GAO), to maintain the integrity of VA’s needs-based benefit programs, and to clarify and address issues necessary for the consistent adjudication of pension and parents’ dependency and indemnity compensation claims.”

The changes are quite comprehensive and touch on a number of areas including net worth, asset transfers, medical expenses and income deductions. This paper will focus on those areas affecting eligibility for pension programs.

← Back to Resources