Bill

Bill > A1909


NJ A1909

NJ A1909
Requires DHS to disregard certain federal pension benefits for veterans in making Medicaid eligibility determinations.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill requires the Department of Human Services to disregard United States Department of Veterans Affairs (VA) Aid and Attendance pension benefits when making Medicaid eligibility determinations for certain veterans, aged 65 years and older, who require in-home or nursing home care due to illness or disability. The dollar value of the Aid and Attendance benefit, which is an "add-on" payment to the base VA Pension benefit available to veterans and the surviving spouses of veterans with an annual income and resources below a predetermined threshold, could potentially render a veteran, or the surviving spouse of a veteran, ineligible for State Medicaid benefits. To qualify for Aid and Attendance pension benefits, a veteran is required to: need in-home assistance with activities of daily living (ADLs) due to disability or illness; currently reside in a nursing home or assisted living facility due to a loss of physical or mental abilities caused by illness or disability; be confined to bed, or spend a substantive portion of the day in bed, due to illness; or be diagnosed with limited eyesight, despite the use of corrective lenses. Veterans applying for Aid and Attendance benefits are also required to be aged 65 years or older, have received an honorable discharge after at least 90 days of active duty military service, and currently receive VA Pension benefits. The surviving spouse of a veteran may also qualify for Aid and Attendance benefits, provided the spouse meets the VA's eligibility criteria. VA Pension benefits, including Aid and Attendance benefits, are based on the difference between a veteran's countable income and the maximum amount of VA Pension benefits payable to an individual veteran, as determined annually by the United States Congress. The VA defines "countable income" as including the veteran's Social Security Benefits, retirement and investment payments, and any income received by dependents of the veteran. The maximum VA pension amount, also called the "Maximum Annual Pension Rate (MAPR)," is based on a veteran's individual circumstances, such as whether the veteran is married to another veteran who also qualifies for a VA Pension benefit, the number of dependents the veteran has, and whether the veteran is disabled, thereby qualifying for certain pension "add-on" payments, such as the Aid and Attendance benefit. The VA adjusts MAPRs to provide an annual cost-of-living increase. The 2025 MAPR for a single veteran with no dependents who qualifies for the Aid and Attendance benefit is $28,300. A veteran who qualifies for Aid and Attendance benefits, and can claim either a dependent spouse or child, has a 2025 MAPR of $33,548; the veteran may add $2,902 to the MAPR amount for each eligible dependent. The largest 2025 MAPR amount, which is for a married couple who are both veterans and both qualify for Aid and Attendance benefits, totals $44,886. If the couple has dependent children, $2,902 is added per dependent child to the annual benefit payment. To qualify for any form of VA pension benefits in 2025, a veteran's "net worth," including the veteran's and spouse's assets and annual income, may not surpass $159,240. Assets are defined as including investments, furniture, boats, and land and buildings owned by the veteran or the veteran's spouse, with the exception of a primary residence and a car. Income includes salary or hourly pay, tips, commissions, bonuses, and overtime pay, but does not include unreimbursed medical expenses or educational expenses. Given that a veteran is required to be at least 65 years in order to qualify for Aid and Attendance benefits through the VA, most veterans receiving these benefits would qualify for federal Medicare benefits as well. Certain veterans who qualify for State Medicaid benefits would also be eligible for one of three federal Medicare Savings Programs available to low-income senior citizens.

AI Summary

This bill requires the Department of Human Services (DHS) to disregard certain federal pension benefits for veterans, specifically the U.S. Department of Veterans Affairs (VA) Aid and Attendance pension benefits, when determining Medicaid eligibility for veterans and their surviving spouses who are 65 years or older and require in-home or nursing home care due to illness or disability. The Aid and Attendance benefit is an additional payment to the base VA Pension for those with limited income and resources who need assistance with daily living, are bedridden, or have vision impairment, and it could otherwise make a veteran ineligible for Medicaid. The bill also clarifies that a "veteran" is defined as an individual who served on active duty in the U.S. Armed Forces, other than for training, and was discharged honorably. The DHS is directed to adopt necessary regulations and seek federal approval to implement these changes and maintain federal funding for the Medicaid program.

Committee Categories

Military Affairs and Security

Sponsors (1)

Last Action

Introduced, Referred to Assembly Military and Veterans' Affairs Committee (on 01/13/2026)

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