Can Veterans Get Medicaid? Eligibility, VA Care, and Using Both

Can veterans get Medicaid? Yes. Veterans Medicaid eligibility works the same way it does for anyone else: your state looks at income, age, disability, and sometimes assets. Military service does not qualify you on its own, and it never disqualifies you either.

You can also keep VA health care while you are on Medicaid. About 1 in 10 veterans, or 1.6 million people, had Medicaid in 2023, per KFF. This guide covers who qualifies, how each VA payment counts as income, and how to use both programs.

Key Takeaways

• Veterans qualify for Medicaid through the same income, age and disability rules as other adults. There is no separate veterans Medicaid program.
• In the 41 expansion states (including DC), adults with income up to 138% of the poverty level can qualify, about $22,025 a year for one person in 2026.
• VA disability compensation and VA pension are not counted for most adult Medicaid, because they are not taxable. For 65+, disability and nursing home Medicaid, they usually count.
• VA Aid and Attendance, housebound allowances and VA payments for unreimbursed medical expenses are not counted when Medicaid checks eligibility under SSI rules, though a nursing home can count them toward your share of cost.
• VA does not bill Medicaid. You choose which coverage to use for each visit, and Medicaid pays last.
• The federal Medicaid work rules that start in 2027 exempt veterans with a disability rated as total, including TDIU, plus people who are medically frail or disabled.

Can veterans get Medicaid?

Yes. Any veteran who meets their state’s Medicaid rules can enroll, and having VA health care, TRICARE or Medicare does not block you. Medicaid helps fill gaps for veterans who are low-income, have disabilities, or do not qualify for military health benefits, per KFF.

Many veterans assume VA covers them for everything. It does not. Eligibility for VA health care depends on service history, discharge status, income, and whether a condition is connected to service. About half of all veterans are enrolled in it, according to the same KFF brief.

That leaves a large group of veterans who rely on other coverage. The share of veterans with Medicaid rose from 8% in 2013 to 10% in 2023, while the uninsured rate for veterans fell from 6% to 2%, per KFF’s analysis of Census data.

Most veterans with Medicaid also have something else. Only 17% had Medicaid alone. The most common pairing was Medicaid with Medicare, which reflects an aging veteran population: half of veterans on Medicaid were 65 or older.

Who qualifies for veterans Medicaid: the main pathways

Veterans usually qualify through one of three routes: the adult expansion group in expansion states, the aged, blind or disabled group, or nursing home and long-term care coverage. Each route has its own income test, and only the last two usually check assets.

Expansion states: adults under 65

The Affordable Care Act let states cover nearly all adults with income up to 138% of the federal poverty level. As of October 2026, 41 states including DC have adopted the expansion and 10 have not, per the KFF expansion tracker.

The 2026 poverty guideline for one person in the 48 contiguous states is $15,960, per HHS. That puts 138% at about $22,025 a year, or $1,835 a month. Alaska and Hawaii use higher guidelines.

Expansion matters for veterans. In 2023, 11% of veterans in expansion states had Medicaid compared with 9% in non-expansion states, and 69% of veterans on Medicaid lived in an expansion state, per KFF. For each state’s exact limits, see our Medicaid income limits chart.

Non-expansion states

In the 10 states without expansion, an adult under 65 with no children and no disability usually has no Medicaid category to fall into, even with very low income. Veterans in those states most often qualify by being 65 or older, by having a disability, or as a low-income parent.

If you live in a non-expansion state and do not qualify, VA health care may still be an option, and the Marketplace may offer subsidized plans. Our ACA open enrollment guide covers dates and subsidies.

Age 65+, blind or disabled

Veterans who are 65 or older, blind, or disabled can qualify through their state’s aged, blind and disabled group. These programs follow SSI income rules rather than tax rules, which changes how VA money is counted (covered in the next section).

The VA Geriatrics office notes that income limits for these groups average about 100% to 138% of the poverty level depending on the state, and the asset limit is usually about $2,000 per person, not counting your home, one vehicle and personal belongings, per VA.

Medicaid pathways for veterans at a glance

Pathway	Who it covers	Income test	Asset test
Adult expansion group	Ages 19 to 64, in 41 states plus DC	Up to 138% FPL, using tax (MAGI) rules	No
Parents and caretakers	Low-income parents in every state	State-set limit, using MAGI rules	No
Aged, blind, disabled	Age 65+, blind, or disabled	State-set limit, using SSI rules	Usually about $2,000
Nursing home and long-term care	People who need a nursing home level of care	SSI rules; states may allow up to 300% of the SSI rate	Usually yes, plus a look-back

Does VA disability count as income for Medicaid?

It depends on the Medicaid group. For adult expansion, parent and child coverage, VA disability compensation and VA pension do not count, because Medicaid uses tax-based MAGI rules and VA benefits are not taxable. For 65+, disability and nursing home Medicaid, both usually count.

Under tax-based (MAGI) rules, VA benefits do not count

Federal rules require Medicaid to measure income for most adults, parents and children using modified adjusted gross income, as defined in the tax code, under 42 CFR 435.603.

The IRS says “Don’t include in your income any veterans’ benefits paid under any law, regulation, or administrative practice administered by the Department of Veterans Affairs,” including “disability compensation and pension payments for disabilities,” per IRS Publication 525.

HealthCare.gov’s income guide lists “veterans’ disability payments” among the income types you do not count, along with SSI and child support, per HealthCare.gov. Wages, retirement pay and Social Security still count.

In practice, a veteran under 65 whose only income is VA disability compensation can show $0 of MAGI income. In an expansion state, that veteran can qualify for Medicaid on income, even at a 100% rating.

Under SSI rules, most VA payments count

Aged, blind, disabled and nursing home Medicaid use SSI methods. Federal SSI rules list “veterans benefits” as unearned income under 20 CFR 416.1121. How much counts depends on the type of VA payment.

• Disability compensation. Counts, but it is not a needs-based benefit, so the first $20 a month is excluded under 20 CFR 416.1124(c)(12).
• VA pension. Counts, and because it is needs-based and federally funded, it does not get the $20 exclusion, per SSA’s POMS SI 00830.302.
• Aid and Attendance and housebound allowances. Not income for SSI purposes, per POMS SI 00830.308.
• Unreimbursed medical expense increases. VA payments resulting from unreimbursed medical expenses are not income, per POMS SI 00830.312.
• Extra money for dependents. When VA raises a payment because of a spouse or child who lives with you, that added amount is treated as the dependent’s income, per POMS SI 00830.314.

Some states use their own methods, so treat this as the federal baseline. One catch in a nursing home: once you qualify, income that was disregarded for eligibility must be considered when the state sets your monthly share of the cost, under 42 CFR 435.725.

How VA payments count for Medicaid

VA payment	Adult, parent and child Medicaid (MAGI)	65+, disability and nursing home Medicaid (SSI rules)
Disability compensation	Not counted	Counted, minus $20
Veterans Pension	Not counted	Counted, no $20 exclusion
Aid and Attendance or housebound allowance	Not counted	Not counted for eligibility; can count toward a nursing home share of cost
Unreimbursed medical expense adjustment	Not counted	Not counted for eligibility; can count toward a nursing home share of cost
Military retirement pay based on age or service	Counted (taxable)	Counted

A worked example at a 100% rating

A single veteran rated 100% with no dependents receives $3,938.58 a month in 2026, per the VA rate table. Our VA disability rates guide lists every rating and dependent amount.

At age 50 in an expansion state, that veteran’s MAGI income from VA is $0, so the payment does not stand in the way. At age 70 applying for nursing home Medicaid, the full $3,938.58 is checked against the special income limit, because that test uses income before any deductions.

Federal rules let states cover nursing home residents with income before deductions up to 300% of the SSI benefit, under 42 CFR 435.1005. With SSI at $994 a month in 2026, per SSA, that cap is $2,982.

So in that example the veteran is $956.58 over the cap. States handle people over the limit in different ways, so ask your state agency or a VA social worker before you assume you are shut out.

Can you have VA health care and Medicaid at the same time?

Yes. VA says “you can use VA health care benefits along with” Medicaid, Medicare, TRICARE or private insurance. Having other coverage does not change the VA care you can get, per VA.gov.

There is no rule that makes you pick one. The two programs run side by side, and you decide which to use for each appointment or prescription.

Who pays first?

VA and Medicaid do not split the same bill. VA states plainly: “We don’t bill Medicare or Medicaid.” Care you get at a VA facility, or from an outside provider the department has authorized, is paid under your VA benefits and copay rules.

If you see a non-VA doctor who takes Medicaid and VA did not authorize the visit, the bill goes to Medicaid. When other insurance is involved, Medicaid pays last: “all other available third party resources must meet their legal obligation to pay claims before the Medicaid program pays,” per Medicaid.gov.

That means Medicare, job-based insurance and similar plans pay ahead of Medicaid. Tell your VA doctor about care you get elsewhere so your treatment can be coordinated.

Medicaid can also help your VA priority group

Enrolled veterans are placed into priority groups, which affect copays and access. Priority group 5 includes veterans who are “eligible for Medicaid programs” and those “receiving VA pension benefits,” per the VA priority groups page.

Higher groups are based on ratings: group 1 covers a 50% or higher rating or unemployability, group 2 covers 30% or 40%, and group 3 covers 10% or 20%, former POWs and Purple Heart recipients. If you qualify for Medicaid, report it so your group can be reviewed.

Why veterans use both

• Location. Medicaid can pay for care at local doctors and hospitals that are not VA facilities.
• Family. VA health care does not cover family members. CHAMPVA can cover the spouse and children of a veteran rated permanently and totally disabled from a service-connected condition, per VA. Other dependents can use the Marketplace, Medicaid or CHIP, per HealthCare.gov.
• Long-term care. Some long-term services fall outside VA health care, and the department itself points to Medicaid to pay for them.
• Backup. VA encourages enrolled veterans to sign up for Medicare when eligible, and other coverage can pay for care outside the VA system.

One more ACA point: if you are enrolled in VA health care or TRICARE, you are “considered covered under the health care law,” per HealthCare.gov. VA coverage counts as qualifying coverage on its own.

Nursing homes, long-term care and state veterans homes

VA offers nursing home care in three settings, but it pays only for veterans who meet its rules on service-connected disability, rating level and income. For long-term care VA does not cover, VA says you may be able to pay through Medicaid, Medicare or private insurance, per VA.gov.

The three settings are Community Living Centers run by the department, Community Nursing Homes under contract, and State Veterans Homes owned and managed by states.

For contract nursing homes, the department pays only if you meet “eligibility criteria involving your service connected status, level of disability, and income.”

State Veterans Homes are a separate track. Each state sets its own admission rules, and eligibility is based on clinical need and space, per VA Geriatrics. Ask the home directly what payment it accepts and what you would owe.

What Medicaid nursing home coverage requires

State Medicaid covers nursing home services for people who qualify, and many states also pay for home and community services that keep you out of a facility, per VA’s Medicaid and long-term care guide. You generally need to pass three tests.

• General. Be 65 or older, under 65 with a permanent disability, or blind, and be a resident and citizen or qualified immigrant.
• Financial. Meet the state’s income and asset limits. Assets are often capped at about $2,000 per person.
• Functional. A health professional assesses your need for help with daily activities like eating, bathing, dressing and using the toilet.

The state also reviews gifts and transfers made before you apply. Our guide to the Medicaid look-back period explains the five-year rule and its penalties.

The $90 VA pension rule

One federal rule applies only to veterans. If a veteran with no spouse and no child is covered by Medicaid in a nursing facility, VA pays no more than $90 a month in pension after the month of admission, under 38 U.S.C. 5503(d).

The same law says Medicaid’s payment to the nursing home “may not be reduced” by that $90, so the veteran keeps it for personal needs. SSA treats the $90 as an Aid and Attendance allowance, so it is not income for SSI purposes.

The VA cut does not apply in a State Veterans Home that receives VA per diem payments, which the law excludes from its definition of a nursing facility. The $90 rule runs through January 31, 2033.

In a State Veterans Home, federal Medicaid law instead applies pension above $90, including Aid and Attendance, to the home’s cost of care, under 42 U.S.C. 1396a(r)(1)(B).

A surviving spouse with no child faces the same $90 cap under 38 U.S.C. 5503(d)(5). The cap applies to pension, not to disability compensation.

Older veterans: Medicare, Medicaid and VA together

Many older veterans hold three kinds of coverage. Medicare is the main insurance at 65, Medicaid fills cost gaps for those with low income, and VA care stays available at VA facilities. KFF found 60% of veterans on Medicaid also had Medicare.

The department encourages enrolled veterans to sign up for Medicare as soon as they can. It notes that Medicare covers non-VA hospitals and doctors, that VA funding could change, and that signing up for Part B late can bring a premium penalty that lasts as long as you have Part B.

If you have Medicare and VA coverage, the department says “you’ll need to choose which benefits to use each time you receive care.” It does not bill Medicare, though it may bill a Medigap supplement for covered services.

When you have both Medicare and Medicaid, Medicare pays first and Medicaid pays last. If your income is too high for full Medicaid, a Medicare Savings Program may still pay your Part B premium, and Extra Help can lower drug costs.

For the core differences between the two programs, read our Medicare vs Medicaid guide.

Why Medicaid matters for veterans with disabilities

Veterans on Medicaid report disabilities at much higher rates than other veterans: 49% compared with 29% of veterans without Medicaid, per KFF. The gap is widest in the working years, ages 50 to 64.

Health needs follow the same pattern. KFF found 45% of veterans with Medicaid rate their health as fair or poor, compared with 18% of other veterans, and 46% report a mental illness, compared with 17%.

Among veterans on Medicaid, 41% received mental health or substance use treatment in the past year. Medicaid lets these veterans see providers outside the VA system, which can matter when the nearest VA clinic is far away.

If you have a service-connected condition, start by checking your VA rating and benefits. Our VA conditions guides explain how common conditions are rated.

2026 federal changes: work rules and veteran exemptions

A 2025 federal law, P.L. 119-21, requires states to add Medicaid work or “community engagement” rules for adults in the expansion group. The rules start January 1, 2027, or earlier if a state chooses, though CMS can give a state more time, up to December 31, 2028. They exempt veterans with a disability rated as total.

Under section 71119 of the statute, adults 19 to 64 in the expansion group must show 80 hours a month of work, community service, a work program, or a mix, or be enrolled at least half-time in school. Income of at least 80 hours at the federal minimum wage also counts.

The law lists people who are excluded. They include “a veteran with a disability rated as total under section 1155 of title 38,” people who are medically frail, including those who are blind or disabled, and people with a substance use disorder or disabling mental disorder.

Parents or caregivers of a child 13 or under or of a disabled person are also exempt, as are people meeting TANF work rules or living in a SNAP household that is subject to SNAP work rules. A veteran rated below total is not automatically exempt, but may qualify under another category, such as medically frail.

CMS answered the unemployability question in an interim final rule published June 3, 2026. Veterans paid at the 100% rate through individual unemployability (TDIU) must be treated like veterans rated 100%, so they are exempt too. A temporary 100% rating also counts, per the CMS rule.

Section 71107 also requires states to recheck eligibility for expansion adults every 6 months, starting with renewals scheduled after December 31, 2026. Answer renewal mail quickly, and keep your VA award letter handy as proof of your rating.

KFF found that 68% of working-age veterans on Medicaid were already working, not counting those on SSI, SSDI or Medicare. The risk for many veterans is paperwork, not a lack of work, so keep records of hours and exemptions.

How veterans apply for Medicaid

Apply through your state Medicaid agency or through HealthCare.gov, which sends your information to your state agency if you look eligible. You can apply for Medicaid any time of year, per HealthCare.gov.

1. Check your pathway. Under 65 in an expansion state, you likely apply under the adult group. If you are 65 or older, disabled, or need nursing home care, you apply under the aged, blind and disabled rules.
2. Gather income proof. Collect pay stubs, Social Security and retirement statements, and your VA benefit letter. You can download VA award letters from VA.gov.
3. List assets if they apply. For 65+, disability or long-term care Medicaid, have bank statements and records of property and any recent transfers ready.
4. Apply. Use your state’s online portal, call the state office, or start at HealthCare.gov if you are under 65.
5. Report it. Tell the department about your Medicaid eligibility so your priority group can be reviewed, and keep your VA care active.
6. Get help if needed. A VA social worker can help with long-term care paperwork, and an accredited veterans service officer can help with VA claims.

If you are not enrolled in VA health care yet, check eligibility as well. The department generally requires 24 months of continuous service or the full call-up period, plus a discharge that is not dishonorable, with exceptions such as service before September 7, 1980, per VA.gov.

Toxic exposure rules widened access. Veterans who served in the Vietnam War, Gulf War, Iraq, Afghanistan or any combat zone after 9/11 are now eligible for VA health care if they meet basic service and discharge rules, per the same page.

VA health care vs Medicaid: side by side

VA health care is a federal system you earn through military service. Medicaid is a state-run program based on financial need. Many veterans qualify for both, and the two can work together.

VA health care compared with Medicaid

Feature	VA health care	Medicaid
Who runs it	Department of Veterans Affairs	Each state, with federal funding
Basis for eligibility	Service, discharge, rating, sometimes income	Income, age, disability, sometimes assets
Where you get care	VA facilities or VA-authorized providers	Providers who accept your state’s Medicaid
Family members	Not covered; CHAMPVA covers some families	Can be covered if they qualify
Long-term care	Some services, based on rating and income	Nursing home care for those who qualify
Billing between them	VA does not bill Medicaid	Pays after other insurance
Counts as ACA coverage	Yes	Yes

Next steps

Start with your age and state. If you are under 65 and live in an expansion state, VA disability pay will not count against you, so apply. If you are 65 or older or need long-term care, check which VA payments count before you file.

Program rules change, and states set many of the details. Confirm current figures with your state agency before you make a decision.

Related reading:

• Veterans benefits hub
• Medicaid program guide
• SSI income limit
• HUD-VASH housing vouchers for veterans