To amend title XIX of the Social Security Act to provide post-eligibility treatment of certain payments received under a Department of Veterans Affairs pension or compensation program.

Amends title XIX (Medicaid) of the Social Security Act to revise the post-eligibility treatment of the income of certain individuals (veterans and related persons) who are institutionalized or receiving home or community-based services under a certain waiver. Requires that any and all payments received under a Department of Veterans Affairs pension or compensation program be taken into account as income, including payments attributable to the recipient's medical expenses or to the recipient's need for aid and attendance, but excluding that part of any augmented benefit attributable to a dependent.