AB 73

Under current law, the Department of Veterans Affairs (DVA) may provide

assistance payments to veterans who have suffered a loss of income due to illness,

injury, or natural disaster. DVA may not provide the assistance if the veteran has

other assets or income available to meet basic subsistence needs or if the veteran is

eligible to receive aid from other sources. Currently, DVA may also provide health

care aid to a veteran who does not have sufficient income and assets to obtain the

health care. Current law allows the unremarried spouse and dependent children of

a deceased veteran to receive assistance and health care if they do not have sufficient

income and assets. DVA is required under current law to promulgate rules specifying

the eligibility criteria and income limits for these assistance programs. The current

rule limits eligibility to applicants whose liquid assets, including bank accounts,

stocks, funds in retirement accounts, and cash value of life insurance, do not exceed

$1,000.

This bill exempts the cash value of life insurance from being considered when

determining if a veteran or his or her unremarried spouse and dependent children

are eligible for an assistance payment or health care aid.