LUMP SUM PAYMENT: NONRECURRING (RESOURCE) (MAM)

____________________________________________________________

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, e.g., SSA, SSI, or UC;

. 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 the Office of Medicaid Business and Policy (OMBP). OMBP will determine the dollar amount the individual must reimburse the Department of Health and Human Services;

. rebates or credits; and

. refunds of security deposits on rental properties or utilities.

Treatment: Countable resource in the month after the month payments were received. 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 by DHHS  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.

Earned Income Tax Credit Payments received as a lump sum are excluded as a resource for 12 months from date of receipt.

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

References: 26 USC 6409; He-W 856.04(b)(10); RSA 167:17(V)