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VA Aid & Attendence Proposed Rule Chanes are Devastating
| Posted on March 22, 2015 at 3:07 PM |
On
January 23, 2015, the Federal Register released Document No. 2015-00297. This
document has caused quite a stir in the elder care industry, and has climbed
to the top of the “hot-button issues” list. If you’re not yet familiar
with the document, you’re likely wondering what could possibly cause such
widespread interest. It’s an unexpected rule proposal by the Department of
Veterans Affairs (“VA”) regarding net worth determinations, asset transfers,
and income exclusions for Veterans pension benefit eligibility. You need to know what they are doing and how to take
action to STOP them from simply passing these regulations without legislation or
vote! Below is a summary of the main changes. VA
proposes a three year look-back
period for transfers of assets for less than fair market value.
Veterans and their spouses, who are determined to have transferred assets in
contravention of the rule, would be subject to apenalty period up to 10 years. VA
proposes to calculate the penalty period by dividing the total amount
transferred for less than fair market value (FMV) by the monthly maximum pension
a beneficiary could receive. For example, the penalty period would be calculated
as follows: Married Veteran transfers $50,000 for less than FMV – penalty period
is 23 months ($50,000 / $2,120 = 23.58) Surviving spouse transfers $50,000 for
less than FMV – penalty period is 43 months ($50,000 / $1,149 = 43.51). This
is completely unfair to the surviving spouses, who become subject to a penalty
nearly twice as long as for married veterans. VA
proposes to limit the allowable deduction for in-home health care to the average
hourly private pay rate for home health aides as published by the MetLife Mature
Market Institute, which was $21 an hour in 2012. More than 50% of home care
recipients already pay more than that. The
VA also intends to completely exclude
the costs of independent living facilities as medical expenses,
unless the facility provides 24/7 custodial care supervision
or assistance with two activities of daily living (or directly
contracts with a third party, professional care provider to
do so). This will eliminate anyone who is housebound needing
to live in a safe environment due to physical or cognitive
limitations. Previously,
a Veteran’s personal residence and a reasonable lot area would be excluded for
purposes of calculating net worth. In its proposed rule, VA proposes to limit
the land exemption to only TWO acres. This rule improperly punishes rural
veterans and farmers. This
proposed legislation is a dishonor to our honorable veterans who made great
sacrifices to protect our country. YOU CAN HELP! The
public has until March 24, 2015 to make comments to these proposed regulations.
Please take the time to comment on these unfair and potentially illegal
changes. Click through to this
link to review the proposed rules and to submit comments at http://www.regulations.gov and search for: RIN
2900-AO73 We don’t
know when the rules will be changed, so you must act fast. |
Categories: VA NEWS
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