LUMP SUM PAYMENTS (AAM)

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Lump sum payments are nonrecurring payments such as:

• awards, lotteries, prizes, windfalls,

• conversion of resources to cash,

• corrective payments,

• inheritances,

• insurance claims,

• retirement benefits,

• retroactive benefits or payments, e.g., SSA, SSI, or UC

• sale of property,

• settlement of personal injury or property claims, and

• third-party lump sum medical payments.

- If payments for medical expenses were previously paid by Medicaid, send all details regarding lump sum medical payments to the Medicaid Administration Bureau (MAB) MAB will determine the dollar amount the individual must reimburse the Department of Health and Human Services.

Treatment: Countable resource in the month after the month of receipt. Reduce the value of the lump sum payment by any directly related expenses such as:

- attorney fees,

- cost of repair or replacement of the resource for which the lump sum was paid,

- portion used to reimburse DHHS for past medical or financial assistance, or

- medical bills directly associated with a personal injury settlement.

Exceptions:

Corrective payments are a countable resource in the second month following the month of receipt.

VA payments to children born with spina bifida (including adult children) of Vietnam veterans are excluded per Sections 421 and 422(c) of Public Law 104-204.

See Lump Sum Death Benefits and Lump Sum Earned Income for the treatment of those types of nonrecurring lump sum payments.