Researcher: RP Page 1 4/1/21
OLR Bill Analysis
sHB 6482
AN ACT EXCLUDING FEDERAL VETERANS' BENEFITS FROM
INCOME ELIGIBILITY FOR PUBLIC ASSISTANCE PROGRAMS.
SUMMARY
Under current law, the Department of Social Services (DSS) must
disregard a veteran’s or surviving spouse’s federal aid and attendance
pension benefits when calculating income for certain (1) means-tested
state assistance programs and (2) federally-funded assistance
programs, to the extent allowed by federal law. This bill expands the
income disregard to include any U.S. Department of Veterans Affairs
(VA)-administered federal benefits (see BACKGROUND). Under the
bill, the income disregards apply to the following programs:
1. Medicaid (§§ 1 & 5),
2. Medicare Savings Program (§§ 1 & 4),
3. Connecticut Energy Assistance Program (§ 1),
4. State Administered General Assistance (§ 3),
5. State Supplement Program (§ 2),
6. Connecticut Home Care Program for Elders (§ 6), and
7. State Appropriated Fuel Assistance Program (which is currently
inactive)(§ 7).
As a veteran’s disability compensation payments are not subject to
federal or state income tax, they are disregarded in determining
eligibility for Medicaid coverage groups that use modified adjusted
gross income (MAGI) rules to calculate income limits (i.e., HUSKY A,
B, and D). For coverage groups that do not use MAGI rules (HUSKY
C), only aid and attendance benefits are disregarded. 2021HB-06482-R000240-BA.DOCX
Researcher: RP Page 2 4/1/21
As under existing law, DSS may apply to the federal Centers for
Medicare and Medicaid Services to amend the state Medicaid plan or
seek a waiver from federal law, if necessary, to exempt these veterans’
benefits (CGS § 17b-28i).
EFFECTIVE DATE: July 1, 2021
BACKGROUND
Aid and Attendance
The VA’s aid and attendance benefit is a monthly payment added to
a VA pension for qualified veterans and survivors who need assistance
performing daily activities, are bedridden, have limited eyesight, or
are in a nursing home due to mental or physical incapacity.
U.S. VA-Administered Benefits
The VA administers numerous benefits for veterans (and in some
cases spouses, dependents, and survivors), including (1) pension
benefits (i.e., veterans and survivors’ pensions and aid and attendance
and housebound allowances); (2) disability benefits; (3) health care;
and (4) education benefits.
Related Bills
sSB 917, favorably reported by the Veterans’ Affairs Committee,
expands the income disregard for veterans and their surviving spouses
under the same DSS assistance programs to include any VA -
administered federal pension benefit, rather than just aid and
attendance benefits.
HB 5592, favorably reported by the Veterans’ Affairs Committee,
expands the general definition of “veteran” under state law to include
those released with an other than honorable discharge based on
specified qualifying conditions (e.g., military sexual trauma
experience, a qualifying mental health condition, sexual orientation, or
gender identity or expression). In doing so, it expands eligibility for
any statutory programs or benefits that reference this definition,
including the DSS income disregards for veterans and their surviving
spouses. 2021HB-06482-R000240-BA.DOCX
Researcher: RP Page 3 4/1/21
COMMITTEE ACTION
Veterans’ Affairs Committee
Joint Favorable Substitute
Yea 14 Nay 3 (03/18/2021)