In the case of a veteran whose entitlement to pension is terminated after January 31, 1985, by reason of income from work or training, the veteran shall retain for a period of three years beginning on the date of such termination all eligibility for care and services under such chapter that the veteran would have had if the veteran’s entitlement to pension had not been terminated. Care and services for which such a veteran retains eligibility include, when applicable, drugs and medicines under section 1712(d) of this title.

For purposes of this section, the term “terminated by reason of income from work or training” means terminated as a result of the veteran’s receipt of earnings from activity performed for remuneration or with gain, but only if the veteran’s annual income from sources other than such earnings would, taken alone, not result in the termination of the veteran’s pension.