Loss of Medical Because You Are Considered to Have Income, Even Though You Had Net CAPITAL Losses!!!

There are a couple of ways, for those who are otherwise entitled to medical benefits, to lose them. One is if you've gambled, won, and spent the money back again to create a loss. The other is if you've had debt forgiveness due to your inability to pay it back.

In the case of gambling, wins are included in your income, even if you've lost those winnings (and more). Such wins (LOSSES)can even make your Social Security Income taxable, even though you've sustained losses. Such additions to income count in deciding your ability to pay for medical care at VA facilities.

In the case of debt forgiveness, even though you receive no usable income, it is treated as if you made it. If these, which are basically not income, exceed the amounts you are allowed to make, you lose your medical benefits and are forced to pay copays even though, in reality, you have a very low income. Such forgiveness can also make your Social Security Benefits taxable.

Before Bush, those who were entitled to transportation were provided it FREE. Now they pay!! Prescriptions were FREE. Now they are not!!! In fact, in many csses, it is cheaper to buy ones prescriptions locally rather than from the VA. Primary Care visits were free, now they are not for those in the category addressed in this post. In fact, the co-pay for services now charged at VA facilities is higher than than charged by local doctors,specialists, and other facilities. At the same time, one is lucky if they are seen on time, or even seen, when showing up for appointments. Adding insult to injury, by the time you find out about loss of benefits, you're billed for a year or two of services which you might have thought you were entitled to receive. Medicare does not pay for treatment received at the VA so one loses out on the benefits that might otherwise have been available from that source.

The lesson to be learned is that don't become ill to the extent you can't pay your bills 'cause if the debt is discharged it will count as income which could cause you to lose your medical. The other lesson is, forget about passing the time gambling. That, too, even though you have lost your money, will count as income, causing you to lose health benefits.

Just a head's up, folks!!!- Bush thinks it was a mistake that these benefits were afforded in the first place. In little ways, slowly (but surely), his kind is trying to eliminate government responsibility for the care of veterans. 'tis the survival of the fittest. If you can't provide for yourself, no matter what you've done for the government, you'll not be accomodated by what. to them, is a welfare state!!! (UNLESS YOU'RE A CONGRESSPERSON)??!!-

There is more unfairness in the tax code, and the way the military (MIS)calculates income. It just would take to long to detail how seniors, veterans, and their families suffer maltreatment. MAYBE LATER!!!-

You posted this also in Veterans forums. It is not the military, but the VA. I can tell you that the Co-pay at the VA is less than most health plans. If they bill your insurance and they do not pay, you do not have to, except any co-pay.

If you win enough gambling to pay taxes on it and do not document your loses, then yes that is income and you will have your Medicare and VA benefits based on those earning.

On the debt discharge, the Congress is currently working on changing the law to exempt forgiveness on mortgage debt. Part of this is to not stick people who sell their homes via foreclosure or other mechanisms to get out of a bad situation.

Not posted as a Moderator

This message has been edited. Last edited by: Dave_M,

Dave, the co-pay for those on Medicare (Vets over age 65)is $10 for primary care physicians, with a maximum annual charge. The VA is charging $15. The VA may not bill Medicare. The Veteran must pay that expense out of pocket if they are disqualified due to forgiveness of debt or other non-income (gambling losses in excess of winnings, even though deductible on Schedule A)!!! Mortgage debt is not the only kind of forgiveness. No debt-forgiveness (IMVHO)should play any part in the disqualification of veterans who, for any reason, have had debt forgiven. Obviously, they were unable to repay in the first place.

Many seniors find occupation, recreation, etc. in going to casinos. I become aware of their problems because of thier experience and my expertise in the area of taxation. Even though they lose what they have won, and even though they document those losses, the VA will not make an allowance for the losses when it comes to qualifying for benefits. Those who make the decision are bound to use ones adjusted gross income. Sadly, the adjusted gross income, in many cases, is increased by Social Security, which adds to the income which disqualifies beneficiaries of VA Medical Benefits. There are other cases where the gambling losses, which can also make Social Security income taxable, cannot be deducted on Schedule A because they do not exceed the standard deduction. In those cases, tax is paid on that which was actually lost income plus the Social Security. Go fig're!!!-

Other clients, who might be able to claim their parents as dependents are also victims of this injustice. Although these children pay 100% of their parents expenses, and who would otherwise be qualified, lose that exemption if the parent earns in excess of $3300. (or whatever the annual allowance might be). A $3300. casino win, even if it is used to continue play, and generate losses in excess of that amount, it disqualifies their children from claiming the exemptions.

HAPPY THANKSGIVING!!!-