IM-#15 March 9, 2010 VA considers unusual medical expenses when determining some needs-based pension and compensation payments. Expenses which exceed 5 percent of the maximum annual VA payment rate are considered unusual. The amount of the unusual medical expenses is deducted from countable income when computing the VA payment. This computation may result in an increase in a pension payment or in an extra payment. An increase or extra payment resulting from this computation is excluded as income. This portion of a VA pension is excluded for MO HealthNet for Families. Enter the full amount of the VA Pension including the portion of the pension designated for unusual medical expenses, as “UI – Unearned Income”, source “VA – Veterans Administration”. Enter the portion of the pension designated for unusual medical expenses as income expense code “ME – VA Unusual Medical Expenses”.