Unreimbursed medical expenses are the reason many families qualify for VA Pension even when, on paper, their income looks too high. VA Pension is needs-based: the VA pays the gap between your countable income and an income ceiling set by Congress, so anything that legitimately lowers your countable income can move you from "denied" to "eligible." Continuing medical and care costs you pay out of pocket, from Medicare premiums to assisted living fees, are deducted from that countable income.

This guide explains how the deduction works, the 5%-of-MAPR threshold that determines how much actually counts, which costs qualify, and how to report them on your application.

In This Guide

Why Unreimbursed Medical Expenses Matter

VA Pension, including its Aid and Attendance and Housebound increases, is a needs-based benefit. The VA does not pay a flat amount. Instead, it pays the difference between your countable income for VA purposes and the applicable Maximum Annual Pension Rate (MAPR) that Congress sets each year. If your countable income is already at or above your MAPR, there is no gap for the VA to fill, and you do not qualify.

Because the benefit is keyed to countable income, reducing that income directly affects both whether you qualify and how much you receive. The VA lets you subtract continuing, unreimbursed medical expenses (UMEs) from your countable income. For an older veteran paying for assisted living, in-home aides, or nursing home care, those costs are often large and recurring, large enough to pull countable income well below the MAPR. That is why a veteran whose income looks too high at first glance can still qualify once real care costs are accounted for.

The 5% MAPR Threshold

There is one rule that trips up most families: not every dollar of medical expense reduces your countable income. Under 38 CFR 3.272(g), only the portion of your UMEs that exceeds 5% of your applicable MAPR is deductible. The first slice of your medical costs, up to that 5% floor, does not count. Everything above it does.

The floor depends on your MAPR category. For 2026:

Veteran category Basic MAPR (2026) 5% floor
Veteran with no dependents $17,441 about $872
Veteran with one dependent $22,839 about $1,141

So a single veteran with no dependents must have more than about $872 in qualifying unreimbursed medical expenses for the year before any of it reduces countable income, and only the amount over that floor is deducted. For a veteran with one dependent, the floor is about $1,141. The floor scales with your own MAPR category, so it rises if your applicable MAPR is higher.

What Counts as a Deductible Medical Expense

The VA defines deductible medical expenses at 38 CFR 3.278. The categories that matter most for senior care include:

  • Assisted living and in-home care. The cost of care in an assisted living or other residential facility, and the cost of in-home attendant services for activities of daily living, count as UMEs when the facility or attendant provides health care or custodial care.
  • Nursing home care. Nursing home costs, including meals and lodging charged by the facility, are deductible.
  • Health insurance premiums. This includes Medicare Parts A, B, and D premiums and long-term care insurance premiums.
  • Prescriptions and supplies. Prescription and non-prescription medications and medically necessary supplies count.
  • Care by health care providers and other medically necessary costs.

For residential care (such as assisted living) and in-home attendant care, there is an extra condition. The cost counts as a UME only when care is genuinely needed, meaning the individual either qualifies for Aid and Attendance or Housebound status, or a physician, physician assistant, certified nurse practitioner, or clinical nurse specialist states in writing that the individual needs that care or must reside in a protected environment due to a physical, mental, developmental, or cognitive disorder. Meals and lodging at such facilities count when the facility provides or contracts for that care.

Not sure which of your care costs the VA will count? Chat with Brevy to walk through your situation.

An Example of How UMEs Help

Consider a single wartime veteran, age 78, with no dependents. Her only income is $24,000 a year in Social Security, which is above the 2026 basic MAPR of $17,441 for a veteran with no dependents. On income alone, she appears over the ceiling and would not qualify.

She now lives in an assisted living community and pays $36,000 a year for her care, and her physician has stated in writing that she needs that level of care. Only the portion of that expense above her 5% floor of about $872 is deductible, leaving roughly $35,128 in deductible UMEs. Subtracting that from her $24,000 of income drops her countable income to zero. With countable income now below the MAPR, the VA pays the difference up to her applicable rate. Because she qualifies for Aid and Attendance, her applicable MAPR is $29,093 a year, or $2,424 a month.

The numbers are illustrative, but the mechanism is exactly how the deduction works: large, recurring care costs can erase countable income and open the door to a benefit that looked out of reach.

How to Report Medical Expenses

You report continuing, recurring unreimbursed medical expenses directly on your pension application. The application is VA Form 21P-527EZ (Application for Veterans Pension). List ongoing costs such as assisted living or nursing home fees, in-home care, and insurance premiums so the VA can deduct them from your countable income when it calculates your benefit.

Keep documentation. Provider statements, the physician's written certification of need for residential or in-home care, facility invoices, and premium records all support the expenses you claim. Because the deduction is based on continuing expenses, accurate, recurring figures help the VA set your benefit correctly from the start.

Think you might qualify once your care costs are counted? Chat with Brevy's care navigator for a quick eligibility check.

Frequently Asked Questions

No. Only the portion of your unreimbursed medical expenses that exceeds 5% of your applicable MAPR is deductible under 38 CFR 3.272(g). For 2026, that floor is about $872 for a single veteran and about $1,141 for a veteran with one dependent; the first slice up to that floor does not count, and everything above it does.

Yes, when care is genuinely needed. Assisted living, other residential facility care, and in-home attendant services count as deductible expenses when the facility or attendant provides health or custodial care and the veteran either qualifies for Aid and Attendance or Housebound status, or a physician, physician assistant, certified nurse practitioner, or clinical nurse specialist certifies in writing that the care is needed.

Yes. Health insurance premiums, including Medicare Parts A, B, and D premiums and long-term care insurance premiums, are deductible medical expenses under 38 CFR 3.278. So are prescriptions, medically necessary supplies, and care by health care providers.

Yes. Because VA Pension pays the difference between countable income and the applicable MAPR, a veteran who appears over-income can still qualify once large recurring care costs, such as assisted living, in-home aides, or nursing home fees, are deducted, since those costs can exceed the 5%-of-MAPR floor and substantially reduce or zero out countable income.

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The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.

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Brevy Care Team

Expert eldercare guidance from Brevy's team of healthcare professionals and researchers.