VA Payment Adjustments for Unusual Medical Expenses (UME)

VA Payment Adjustments for Unusual Medical Expenses (UME). A. VA considers unusual medical expenses when determining some needs-based pension and compensation payments. B. These VA payments resulting from unusual medical expenses are treated as follows: 1. They are not income for eligibility or Medicaid Income purposes. 2. These payments are considered as reimbursements for medical expenses or services that are excluded in the definition of income. 3. Any unspent VA payments resulting from unusual medical expenses are resources if retained into the calendar month following the month of receipt. 4. Prior to July 1, 1994, any VA increase or extra payment resulting from unusual medical expenses was income. The client was required to claim UME as part of the VA Improved Pension application process if UME would result in a higher benefit whether the client lived at home or in a nursing facility as part of the Utilization of Other Benefits provision.