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(b) A Medicaid expenditure made for services that a recipient would not have been required to pay for if the recipient was not eligible for Medicaid is exempt from estate recovery. (c) American Indian and Alaska Native income and resources, including rents, leases, royalties, usage rights, or income from them, are exempt from estate recovery if that income is or those resources are

(1) located on, near, or within the most recent boundaries of a current or prior federally recognized or designated reservation;

(2) derived from the passing of land described in (1) of this subsection from an American Indian or an Alaska Native or descendant of an American Indian or Alaska Native to

(A) one or more relatives, by blood, adoption, or marriage;

(B) another American Indian or Alaska Native; or

(3) derived from the exercise of a federally protected right to extract or harvest natural resources from land described in (1) of this subsection;

(4) held in trust or restricted status or are judgment funds that are exempt from recovery by state law, including the following distributions or conveyances by an Alaska Native corporation organized under to 43 U.S.C. 1601 — 1629h (Alaska Native Claims Settlement Act (ANCSA)) to an Alaska Native or descendant of an Alaska Native:

(A) stock, including stock issued or distributed as a dividend or distribution on stock, or bonds issued by that corporation;

(B) land or an interest land, including land or an interest in land received as a dividend or distribution on stock;

(D) an interest in a settlement trust; and

(E) any other property interest that is conveyed, or deemed to be conveyed, under 43 U.S.C. 1601 — 1629h;

(5) originally protected assets and ownership interests that have been inherited, if the protected source can be clearly traced; or

(6) ownership interest in or usage rights to items not included in this subsection, with unique religious, spiritual, traditional, or cultural significance or usage rights that support subsistence or a traditional lifestyle in accordance with applicable tribal law or custom. (d) In this section,

(1) “Alaska Native group” has the meaning given “Native group” in 43 U.S.C. 1602(d);

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(1) located on, near, or within the most recent boundaries of a current or prior federally recognized or designated reservation;

(2) derived from the passing of land described in (1) of this subsection from an American Indian or an Alaska Native or descendant of an American Indian or Alaska Native to

(A) one or more relatives, by blood, adoption, or marriage;

(B) another American Indian or Alaska Native; or

(3) derived from the exercise of a federally protected right to extract or harvest natural resources from land described in (1) of this subsection;

(A) stock, including stock issued or distributed as a dividend or distribution on stock, or bonds issued by that corporation;

(B) land or an interest land, including land or an interest in land received as a dividend or distribution on stock;

(D) an interest in a settlement trust; and

(E) any other property interest that is conveyed, or deemed to be conveyed, under 43 U.S.C. 1601 — 1629h;

(5) originally protected assets and ownership interests that have been inherited, if the protected source can be clearly traced; or

(1) “Alaska Native group” has the meaning given “Native group” in 43 U.S.C. 1602(d);