Reporting Medical Expenses When A Family Member Pays Part Of The Expense

In order to receive the maximum aid and attendance benefit from the VA, that claimant must be using all of their gross, monthly income on the cost of care and health insurance premiums.

Sometimes, though, the cost of home care or the assisted living facility is more than monthly income. Usually, the person applying will have some savings in a bank account or a CD to make up the difference between income and medical expenses. But in situations where the veteran or spouse does not have any savings, a family member may contribute their own money to the cost of care.

How do you report medical expenses in this situation?

Let’s use an example. The cost of the assisted living facility is $4,000.00 and monthly income is $2,000.00. The claimant’s daughter is contributing $2,000.00 per month to the cost of the care.

In this situation, do not report that the facility expense is $4,000.00 per month. You report that the expense is $2,000.00 per month. The VA only wants to know how much the person applying for benefits is paying.

Why is this important?

If a person with none or very little savings reports that they are paying more than their income on medical expenses, the VA will request additional information. This will slow down the process. The VA will want to know if the claimant forgot to report assets or if someone is helping pay for the care.

If you do receive such a letter from the VA, you will need to complete additional forms, including VA Form 21P-8416 – Medical Expense Report.