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Bill
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To amend title XIX of the Social Security Act to clarify the treatment of lottery winnings and other lump sum income for purposes of income eligibility under the Medicaid program, and for other purposes.

H.R. 2339 · 114th Congress · May 14, 2015 · Lineage

A BILL

Section 1 Treatment of lottery winnings and other lump sum income for purposes of income eligibility under Medicaid

(a)
In general— Paragraph (14) (relating to modified adjusted gross income) of section 1902(e) of the Social Security Act (42 U.S.C. 1396a(e)) is amended by adding at the end the following new subparagraph:

“(J) Treatment of certain lottery winnings and income received as a lump sum

“(i) In the case of an individual who is the recipient of qualified lottery winnings or qualified lump sum income, and whose eligibility for medical assistance is determined based on the application of modified adjusted gross income under subparagraph (A), a State may, in determining such eligibility, consider such winnings or income (as applicable) as income received on a monthly basis—

“(I) if such winnings or income (as applicable) is received in an amount that is less than $50,000, over a period of 12 months; and

“(II) if such winnings or income (as applicable) is received in an amount that is greater than or equal to $50,000, over a period specified by the State not to exceed 240 months, in proportion to the amount of the winnings or income (as applicable).

“(ii) Definitions—In this subparagraph:

“(I) The term “qualified lottery winnings” means winnings from a sweepstakes, lottery, or pool described in paragraph (3) of section 4402 of the Internal Revenue Code of 1986 or a lottery operated by a multi-state or multi-jurisdictional lottery association in an amount that is not less than $20,000, including amounts awarded as a lump sum payment.

“(II) The term “qualified lump sum income” means income that is received as a lump sum in an amount that is not less than $20,000, including income received from the transfer or sale of real or personal property from the estate (as defined in section 1917(b)(4)) of a deceased individual.”

(b)
Rule of construction— Nothing in this Act shall be construed as preventing a State from intercepting the State lottery winnings awarded to an individual in the State to recover amounts paid by the State under the State Medicaid plan under title XIX of the Social Security Act for medical assistance furnished to the individual.
(c)
Effective date— The amendment made by subsection (a) shall apply with respect to income received as a lump sum, or winnings received pursuant to lotteries occurring, after a date specified by the State, but not earlier than the date that is 24 months before such date of enactment.