LUMP SUM PAYMENT: NONRECURRING (RESOURCES) (FAM)

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Lump sum payments that are nonrecurring include:

• awards, lotteries, prizes, windfalls;

• conversion of resources to cash;

• corrective payments;

• inheritances;

• insurance claims;

• retirement benefits;

• retroactive benefits or payments;

• sale of property;

• settlement of personal injury or property claims;

• 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 Medicaid Administration Bureau, Third Party Liability (TPL) at State Office. TPL will determine the dollar amount the individual must reimburse to the Department of Health and Human Services (DHHS);

• rebates or credits; and

• refunds of security deposits on rental property or utilities.

Treatment: Treated as lump sum income for FANF financial assistance. See PART 511, COMMON TYPES OF INCOME: LUMP SUM INCOME (INCOME).

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

References: 45 CFR 233.20(a)(3)(ii)(F)