Page 57

A contract or installment sale of property is where an individual receives at least one payment for the property after the tax year of the sale. This type of sale applies to personal and real property. Any payment of interest and any gain on the sale received because of the sales or installment contract is taxable income and included in the calculation of MAGI for determining household income. 2875.10.10 INCOME FROM CONTRACT SALES (MED 1, MED 4) A loan payment received by the applicant or member is not considered income in the month of receipt if the agreement meets the criteria in section 2615.55.15. The interest portion of the payment received is counted as income while the down payment is considered a resource..00.00 LUMP SUM PAYMENTS A lump sum is any type of cumulative payment made to an individual. A payment of retroactive benefits such as SSI, Social Security, Veterans' benefits, a 13th PERF check or a refund of Medicare Part B premiums is considered a lump sum. Insurance settlements, inheritances, and lottery winnings are also examples of lump sum payments. When evaluating a lump sum, the worker must carefully determine whether it is a recurring payment or a non-recurring payment. Non-recurring means the payment is a one-time payment and is not expected to be received from the same source for the same reason as a lump sum again. Conversely, if a payment is expected to be received again from the same source, it is a recurring lump sum payment. 2880.05.00 LUMP SUM PAYMENTS (MED 1, 2, 4) Any lump sum payment received in a month prior to the month in which authorization of the application takes place, is income in the month of receipt. However, for an active AG, an unanticipated non-recurring lump sum payment does not affect eligibility in the month of receipt, and Medicaid benefits paid during the month of receipt are not recoverable. Recurring lump sum payments are budgeted as income. Any portion of the lump sum remaining after the month of receipt is a resource for non-MAGI (MED 1, 2, 4) AGs. 2880.10.00 LUMP SUM PAYMENTS (MED 3) For MAGI, any amount received as a lump sum is counted as income only in the month received; except “qualified lottery winnings” and “qualified lump sum” i.e., Gambling winnings of $80,000 or greater, received in a single payout. Effective January 1, 2018, under Section 53103 of the Bipartisan Budget Act (BBA) of 2018, “qualified lottery winnings” and “qualified lump sum” i.e., gambling winnings of $80,000 or greater, received in a single payout, are to be counted as income in the month received as well as a period of up to 120 months. This does not apply to