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Title 8: Medicaid Page 33 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Types of Non-MAGI-Related Income Revised April 11, 2025 Low-Income Home Energy Assistance…

Low-Income Home Energy Assistance Payments (LIHEAP) (Cont.)  Winterizing old or substandard dwellings (neither the cost of the materials nor the cost of labor is counted as income). Lump-Sum Income 20 CFR 416.1121, Do not count any lump-sum income received before the month Medicaid eligibility is granted. Exception: A lump sum that is self-employment income must be annualized.

 Nonrecurring Lump Sum Lump-sum payments received on a one-time basis include inheritance and retroactive benefits from Social Security, SSI, certain types of Veterans Administration income (see Non-MAGI-Related Veterans Affairs Payments), and Railroad Retirement.

If the client receives a lump-sum payment, count it as income in the month of receipt, unless the lump sum is a retroactive SSI payment made while the Medicaid application is pending. If the application is pending the SSI decision, then see Retroactive SSI Payments.

For retroactive lump-sum payments of Social Security or SSI, see 8-D, Retroactive SSI and Social Security Lump- Sum Payments, for treatment as a resource. For all other nonrecurring lump sums, count the lump sum as a resource after the month of receipt.

Note: If the lump sum is unearned and is less than $60 or is earned and is less than $30, it may be excluded as infrequent or irregular income. See Infrequent or Irregular Income.

Do not count corrective social security payments as income when the income was previously considered for eligibility and client participation. Count lump sums received in the retroactive period as income.

 Recurring Lump Sum Count recurring lump-sum payments as income and prorate them over the period of time they cover. The prorated amount may be excluded if the exclusion for infrequent or irregular income applies.