Veterans Aid & Attendance Benefit: A Lifeline for Long-Term Care Costs
COVID-19 is here to stay, and studies show it is far more dangerous for people over 65. Seniors living in independent living, assisted living, memory care, and nursing homes face the highest risk of infection and death from COVID-19 or secondary illnesses like pneumonia. As a result, many families now prioritize providing long-term care at home. However, in-home care can be expensive, which is why the VA Aid and Attendance Benefit is so crucial in helping veterans and their families afford this care.
What Is the Aid and Attendance Benefit?
The Aid and Attendance Benefit—formally called the Improved Pension Benefit—is a cash benefit for wartime veterans over 65 who need help with daily living activities, such as:
Bathing and dressing
Eating and managing incontinence
Living safely in a protected environment due to memory or cognitive decline
This benefit is also available to surviving spouses of wartime veterans who are over 65 and meet similar criteria.
Financial Eligibility Requirements
To qualify, applicants must meet income and asset limits. The VA calculates eligibility by subtracting unreimbursed medical expenses from the applicant’s total household income. If all income is offset by medical expenses, the veteran can receive the maximum monthly benefit.
Importantly, the cost of paying an in-home caregiver counts as a medical expense—whether that caregiver is hired through an agency or is an adult child.
2020 Maximum Benefit Amounts
Married wartime veteran: $2,266/month
Single wartime veteran: $1,911/month
Surviving spouse: $1,228/month
For example, a married veteran with $4,000 in monthly household income must have $4,000 in qualifying medical expenses to receive the full $2,266 monthly benefit. Typical expenses include Medicare premiums, supplemental insurance, prescription coverage, and caregiver costs.
Choosing a Caregiver: Family or Agency?
Families have two main options for caregiving:
1. Paying a Family Caregiver
Hiring a child as a caregiver allows flexibility in pay rates, letting families “zero out” income for maximum benefit eligibility. This approach gives families more control and can maximize the hours of care provided.
2. Hiring an Agency Caregiver
Agency caregivers cost more per hour but handle payroll, taxes, and workers’ compensation insurance. This option may result in fewer covered care hours but offers peace of mind and less administrative work for the family.
Asset Limits and Look-Back Period
The VA has an asset limit and a three-year look-back period to check for gifts or asset transfers. Giving away assets within that time may trigger a penalty period before benefits begin. Despite these rules, it’s important not to delay applying—care needs and costs will only grow, and planning early can protect assets and secure care.
The Bottom Line
The VA Aid and Attendance Benefit can be a critical source of financial support for wartime veterans and their surviving spouses who need long-term care. In today’s world, where home care is often the safest choice, this benefit can make quality care possible without depleting savings.
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