Requires the Division of Medical Assistance of the Department of Health and Human Services to apply to the Centers for Medicare and Medicaid Services (CMS) for approval to adopt and implement a policy allowing a deduction from income in determining Medicaid eligibility any amount received as a Department of Veterans Affairs Survivors Pension Benefit. Applies only to recipients in populations for which income is not defined by federal law to be modified adjusted gross income. If approval is obtained, requires implementation effective January 1, 2014.