Why are less than 5% receiving Veterans Benefits
Based on our study, we believe about 33% of all seniors age 65 and older could qualify for the aid and attendance Pension benefit under the right circumstances.
The analysis is as follows:
Although the Veterans Benefits Administration does not differentiate between various Pension applicants, there are, in practice, two kinds of Pension applications.
The first type of application or claim, as it's called by VA, deals with veteran households that do not generally require a rating for "aid and attendance" or "housebound" to receive a benefit or as VA calls it, an award. These applicants will have household income less than the monthly allowable Pension rate. In addition, they will have very little in savings or investments. And, with no ratings, the size of their Pension awards will be much smaller.
It is our opinion that most veterans or their surviving spouses, currently receiving Pension, are in this category. We believe this is true for several reasons.
- One reason is that Veterans Service Representatives in the local regional office, who deal with the public, will tell callers that Pension is only available to veteran households with low income. VSR's turn away a lot of potential applicants. This is probably because these employees are not trained sufficiently to understand the special case of veterans with higher income and high long term care costs.
- A second reason is that callers will be told -- if they have significant savings or investments -- they will not qualify as well. It is possible to give away assets in order to qualify for Pension. Naturally, this represents a conflict of interest for VA and Veterans Service Representatives will not mention this as an option.
- A third reason is that veterans with higher income and significant assets generally don't know they can qualify for Pension under certain conditions. No one has ever told them. As a result, they never apply.
- A compelling fourth reason is that most people don't know the aid and attendance Pension benefit (includes A&A allowance) can help cover home care costs paid to any person or to professional providers. Most people don't attempt to apply until they go into assisted living or they have become single and enter a nursing home where VA pays only $90 a month if the single claimant is eligible for Medicaid.
The table below is from a study conducted for VA to determine how many veterans might apply for Pension in coming years. The subjects of this report are most likely veterans with low household income and few assets.
This group would be included because it is easy to research their demographics in government statistical reports. Those veteran households with higher income and high long term care costs would not show up in this report because it is difficult to predict how many veteran households will actually need long term care and what those costs might be.
It is apparent from the report that only about 28% of the naturally eligible veteran households will actually apply for and receive Pension over the next seven years. It's reasonable to conclude that for those households where Pension naturally fits, VA is not doing a good job of educating potential beneficiaries about this benefit or more would be applying.
In fact, the 2008 federal operating budget projected by Veterans Affairs shows a decline in the number of people applying for Pension; whereas, based on the table below, the program should be serving more than 3 1/2 times as many people as it does now.
The table below does not reflect the number of surviving spouses of eligible veterans or their dependent children who are also eligible for a lesser Pension benefit called "Death Pension." In 2005, approximately 207,000 of these eligible beneficiaries were also receiving Death Pension payments from VA, in addition to the 331,000 estimated living veteran beneficiaries.
Since the 2005 numbers are now available, the actual number of living veteran beneficiaries in 2005, receiving Pension, was 336,000. This compares very well with the 2004 projection represented in the table below.
| Projected # & Duration of Veterans receiving Improved Pension, & # if all Eligibles Participated |
|||
| Year | # of Beneficiaries |
Average Duration |
# of Beneficiaries if all Eligibles Participated |
| 2003 | 317,000 |
7.0 years |
1,205,000 |
| 2005 | 331,000 |
6.8 years |
1,180,000 |
| 2010 | 290,000 |
6.5 years |
1,038,000 |
| 2014 | 255,000 |
6.2 years |
910,000 |
Source: Study Team from VBA date & PricewaterhouseCoopers Report Estimates rounded to the nearest thousand
The following was taken from a survey by ORC Macro Economic Systems Inc., Hay Group, December 22, 2004 called "VA Pension Program Final Report" http://www1.va.gov/op3/docs/Pension.pdf
There is a second type of VA application generally submitted for a claim. Claimants in this category often have income above the maximum Pension rate and they may also have significant savings or investments. This category of application requires a potential beneficiary to be paying for ongoing and expensive long term care or other ongoing medical costs.
Because we believe the study above does not include an estimate for individuals paying for the ongoing costs of long term care and medical insurance, we offer evidence that there is a significantly larger category of potential Pension beneficiaries.
This group of eligible veterans or their survivors is about 10 times larger than the one million or so anticipated eligible beneficiaries covered by the study above and expected to be awarded over the next seven years. On the other hand, this larger group of roughly 10 million Pension beneficiaries can only receive an award under certain special conditions and typically only if they receive a rating. (For more about ratings read the applicable sections in our "Aid and Attendance Handbook for Professionals and Consultants," found in the Veterans Benefits Consultants Package)
Receipt of a Pension benefit for this larger group is generally dependent upon whether these people have a need for long term care services. But, based on the incidence of long term care in an older population, at least 60% to 80% of this larger group might have a good chance of qualifying for Pension or Death Pension sometime during their remaining years.
Read more about the Package See the contents of the Veterans Benefits Consultants Packag
What is a Veterans Benefits Consultant & when should a family use a veterans benefits consultant.
Who is eligible for the Veterans Aid & Attendance pension benefit?
Using aid & attendance to pay any person for care at home, for professional home care, for assisted living, or to pay for a nursing home.
The application process for aid and attendance Pension.
Why are less than 5% of all veterans & their surviving spouses receiving a benefit?
The National Care Planning Council, we promote and support planning for long term care.
An individual acting as a consultant must be careful not to violate any federal statutes and VA regulations pertaining to representation of veteran claimants. At the NCPC, we recognize our responsibility to assist you regarding these matters & have ensured that this package offers extensive guidance on what we believe constitutes a compliant veterans benefits consulting practice. Intergity & honesty are at the heart of our business. We expect those who purchase this package to maintain high ethical standards in all areas of their consulting practices. Furthermore, we would like to express our gratitude and support for those who display stewardship, compassion, care, & integrity while working with seniors & thier families.
