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winnings paid in installments. “Non-cash prizes “such as a car or a boat” should continue to be counted as lump sum income in the month in which they are received and not counted as “qualified lottery winnings.”40 The requirement to count qualified lottery and qualified lump sum income applies to the individual who receives the winnings only, the determination of household income for other members of the individual’s household are not affected (53103 (b)(2) of the BBA of 2018). “Qualified lottery winnings” are “winnings from a sweepstakes, lottery or pool” conducted by a state agency or under authority of state law, or winnings from a lottery operated by a multistate or multijurisdictional lottery association Qualified lump sum income” from gambling includes income from: betting pools; wagers placed through bookmakers; slot machines; roulette wheels; dice tables; lotteries; and bolita numbers games, or the selling of chances therein (1902 (e)(14)(K) of the Act). SSI lump sum payments are considered exempt. Formula for Counting Qualified Winnings Amount of Winnings: $1.00-79,999.00 $80,000.00- $89,999.00 $90,000.00- $99,999.00 Each Additional $10,000.00 Length of Time Counted only in the month received Counted over 2 Months Counted over 3 Months Counted over 1 additional month

• Total winnings are divided into equal installments over each month • The Maximum period that winnings may be counted is 120 months for winnings of $1,260,000 or higher • Applies only to individuals(s) receiving such winnings • Count only in the month received for other household members • Lottery winnings from other states are treated equivalent • Lottery and gambling winnings calculation applies to each instance of winnings • Gambling losses are not considered nor deducted from winnings in MAGI calculation. o Gap-filling regulation at 42CFR435.603(i)do not apply, however members who receive undue medical or financial burden due to lottery/gambling winnings may apply for a hardship exemption with the state. 2885.00.00 DEEMED INCOME (MED 1 AND 4) Deemed income refers to a special budgeting calculation in which a portion of an individual's income is considered available to participating AG members. Deemed income is considered as unearned income in the budget. For additional information regarding deeming, refer to IHCPPM 3455.05.20.