Sponsor
Jared Moskowitz
Representative · D-FL
Representative · D-FL
The bill increases pension eligibility and reduces paperwork for veterans by excluding certain settlements from income calculations, at the cost of modestly higher taxpayer outlays and increased discretionary decision-making that could produce inconsistent claimant outcomes.
Veterans and surviving spouses/children will be more likely to qualify for or receive larger VA pensions because medical reimbursement and pain-and-suffering awards are excluded from countable annual income for pension means testing.
Veterans will face reduced paperwork and administrative burdens because insurance settlements for medical care will not be counted as income in pension eligibility reviews.
Taxpayers may bear modestly higher VA pension costs because excluding certain payments from income increases benefit eligibility or amounts.
Veterans could receive inconsistent or unequal outcomes because the Secretary is allowed to set pain-and-suffering limits on a case-by-case basis, introducing discretion into determinations.
Based on analysis of 2 sections of legislative text.
Excludes certain medical expense reimbursements and some pain-and-suffering payments from annual income used to determine veterans' pension eligibility and payments.
Official title: To amend title 38, United States Code, to exempt reimbursements of certain medical expenses and other payments related to accident, theft, loss, or casualty loss from determinations of annual income with respect to pensions for veterans and surviving spouses and children of veterans, and for other purposes.
Introduced December 18, 2025 by Jared Moskowitz · Last progress December 18, 2025
Amends the rules for calculating annual income used to determine eligibility and payment amounts for veterans' pensions and surviving spouse/child benefits by excluding certain reimbursements and damages from being counted as income. Specifically, medical expense reimbursements (including insurance settlements) for accidents, theft, loss, or casualty losses are excluded to the extent they cover the cost of medical care, and payments for pain and suffering tied to those events are excluded up to an amount the Secretary determines case-by-case. The change becomes effective 180 days after enactment.