VA Health Care Benefits Garnishment/Collection

[NewDawn]

My stepfather-in-law recently received a letter in the mail from the US Treasury Dept explaining that they have been contacted by The VA Health Care System. In a nutshell, the letter says they will be deducting from his SS check up to 15% in order to pay down his medical related debt with the VA Health system.

It goes on to state that they cannot reduce his SS check to lower than $750 for non-tax debt. I thought in Texas you could not garnish wages nor garnish from a SS check for non-tax debts. How exactly does the VA Health Care System fall into garnishment laws, specifically in Texas? Is this considered a debt with a federal agency that allows garnishment of SS checks?

If he files for Chapter 7 bankruptcy, will this debt be erased? He thought he was protected, but now he is panicking. He is 65, but only has Medicare Part A. Including his wife's income, they only get $2,000 a month in SS and can't qualify for any of the Medicare Saving Programs, nor can they can Medicaid. They sure can't afford another $110.50 per month a piece just to have Part B.

It's VERY hard to get medical care in Texas. Any advice would be greatly appreciated.

[NewDawn]

Anybody?

[WhatMoney]

My stepfather-in-law recently received a letter in the mail from the US Treasury Dept explaining that they have been contacted by The VA Health Care System. In a nutshell, the letter says they will be deducting from his SS check up to 15% in order to pay down his medical related debt with the VA Health system.

It goes on to state that they cannot reduce his SS check to lower than $750 for non-tax debt. I thought in Texas you could not garnish wages nor garnish from a SS check for non-tax debts. How exactly does the VA Health Care System fall into garnishment laws, specifically in Texas? Is this considered a debt with a federal agency that allows garnishment of SS checks?

If he files for Chapter 7 bankruptcy, will this debt be erased? He thought he was protected, but now he is panicking. He is 65, but only has Medicare Part A. Including his wife's income, they only get $2,000 a month in SS and can't qualify for any of the Medicare Saving Programs, nor can they can Medicaid. They sure can't afford another $110.50 per month a piece just to have Part B.

It's VERY hard to get medical care in Texas. Any advice would be greatly appreciated.

Yes, Social Security can be garnished up to 15% because your father defaulted on a Federal program, namely VA health care medical payments. Texas law has nothing to say about it - it's just the US Treasury trying to recover unpaid money due them. Likewise this debt probably cannot be discharged in bankruptcy any more than Federal taxes due can be discharged.

There may be a hardship claim to reduce the payment, but with $2000/mo household income that's not clear. You also didn't mention his social security monthly payment - they would only garnish 15% of your father's check. Your father might get advice from an attorney specializing in social security law. Since his income is federal benefits there's no way to stop the feds from deducting the money from those benefits.

Here's a short reference about the US Treasury going after debtors living on Social Security:

http://www.allvoices.com/contributed...urity-payments

http://www.consumeraffairs.com/news/ss_garnish.html

Your parents 'might' qualify for other types of federal aid however. If monthly income is $2000, and you deduct $110.50 x2 for Part B, plus say $150 as the 15% garnishment, monthly income would be around $16,295, which might qualify for food stamps, utility assistance, and possibly QMB (QI-1 needs income less than 135% of FPG), the part of Medicaid that would pay his Medicare Part B premiums. Also he might qualify for lower Part d prescription drug costs. I suggest he visit a local State assistance office for Seniors and have a case worker run the numbers again. Sometimes the Feds taketh away, and then give it back with another program.

http://www.daas.ar.gov/pdf/federal_p...es-2009-10.pdf

The private Medicare Advantage Social Security health plans may also offer better health plans than conventional Medicare, at least for a few years. If your step-father-in-law is refusing to pay Medicare Part B, how is he going to afford routine health care in the future?

[NewDawn]

Well, it turns out the medical co-pays were for prescriptions only that were ordered through the VA system. The debt is only a few hundred dollars, so I guess that will be paid off soon. Recently, he received a letter in the mail to do his annual means test. From what I gather, he will get free care at the VA except for prescriptions. So at least he will continue to get care. I have advised him to apply for pharmaceutical assistance programs for as many of his medicines as he can and buy the rest at Walmart, if possible, under their $4.00 select generic list.

As far as the medical savings programs go, they go by what your social security check is BEFORE any deductions are made from those checks. So at $2,000 per month for a household of two, they don't qualify for any kind of help. You have to be at 135% of Federal Poverty level or less to qualify for those programs. There is the extra help program for Part D, but even that program has an income limit of 150% of Federal Poverty level.

Texas has an online calculator to help determine what you can get in food stamps. I ran the numbers, and it says their income exceeds the income limits. As far as help for utilities, I found one program through the Public Utilities Commission, but again, the income limit is only 125% of poverty level.

They are definitely caught in the trap of earning a little too much to qualify for assistance, but too little to meet basic needs plus health care.

[patchessl]

Well, it turns out the medical co-pays were for prescriptions only that were ordered through the VA system.

Obviously a veteran. Is he on, or eligible for, Tricare?

Did he retire? Have a disability rating?

Tricare has a pharmacy program called ExpressScripts that is very, very affordable. We pay $21.00 every 3 months for over $1,000.00 worth of meds.

If he hasn't yet have your father talk to a Veterans Service Officer at the VFW or American Legion (or AmVets, etc.) The state reps are usually better informed than the local Post reps. (I was a local rep, I can say that!)

There are lots of programs for veterans that your local state public assistance offices will be clueless about. Stuff like help with utilities, rent, food, and medical expenses. A good VSO will be able to find out if he has any available to him.

Good luck, thank him for his service.

[NewDawn]

Thank you very much!! He served in Vietnam. His experiences there were harrowing, to say the least. Occasionally, he will still get nightmares. For a long time, he would still think he was in combat during his sleep and wake up ready to fight.

As far as disability, no, he is not considered disabled by the VA nor receiving any kind of pension. I think Tricare is if you're in active duty, correct? Anyway, I will tell him what I just learned. Maybe it will help.

[WhatMoney]

They are definitely caught in the trap of earning a little too much to qualify for assistance, but too little to meet basic needs plus health care.

Yeah it looks that way. I realize SS income is figured before Part B deductions for QMB. But for food stamps and utility assistance, the Part B premiums and other medical costs are deductions from his SS income. It all depends on their housing expense (rent or mortgage). I tried my state's calculator and w/ a $1000/mo housing payment, they would only get $35/mo food assistance - but would also qualify for $265/yr utility assistance. He is lucky if he can get free VA care though, instead of paying for Medicare Part B.

[patchessl]

He served in Vietnam. His experiences there were harrowing, to say the least. Occasionally, he will still get nightmares. For a long time, he would still think he was in combat during his sleep and wake up ready to fight.

Tell him he really should talk to a VSO. Those are signs of Post Traumatic Stress Disorder (PTSD) and are a Service connectable disability. It is absolutely never too late to file on it - there are WWII & Korea vets just now fling for VA disability.

The VA has recently expanded the qualifications for PTSD for many vets and there are other things he may be eligible for as well. Establishing service connection will open up a lot of benefits for him.

If he was ever in an area where Agent Orange was used he should mention that also. Heck, anything no matter how trivial it may seem might be important. He earned these benefits, he should get them.

The VA system can be aggravating, but with a well grounded claim one should never, ever give up! I have spent the last 20 years wrangling with VA on behalf of my husband and many others. Feel free to pm me if you need further info on it.

[wonderingrov]

Well, it turns out the medical co-pays were for prescriptions only that were ordered through the VA system. The debt is only a few hundred dollars, so I guess that will be paid off soon. Recently, he received a letter in the mail to do his annual means test. From what I gather, he will get free care at the VA except for prescriptions. So at least he will continue to get care. I have advised him to apply for pharmaceutical assistance programs for as many of his medicines as he can and buy the rest at Walmart, if possible, under their $4.00 select generic list.

As far as the medical savings programs go, they go by what your social security check is BEFORE any deductions are made from those checks. So at $2,000 per month for a household of two, they don't qualify for any kind of help. You have to be at 135% of Federal Poverty level or less to qualify for those programs. There is the extra help program for Part D, but even that program has an income limit of 150% of Federal Poverty level.

Texas has an online calculator to help determine what you can get in food stamps. I ran the numbers, and it says their income exceeds the income limits. As far as help for utilities, I found one program through the Public Utilities Commission, but again, the income limit is only 125% of poverty level.

They are definitely caught in the trap of earning a little too much to qualify for assistance, but too little to meet basic needs plus health care.

Hey NewDawn,

I've listed a link below that could help with the cost of medications if he is unable to get assistance from such programs as tricare. This information was given to me my the hospital last year after I had a stroke, and was waiting on my disability to kick in. It gives links to programs offered by various pharmaceutical companies that offer prescription drugs at reduced cost (or free) to those who qualify based on income. Hope this information helps!

http://www.needymeds.org/