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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. Any portion of the lump sum remaining after the month of receipt is a resource. Recurring lump sum payments are budgeted as income.

For MED 3, under MAGI-based income methodology, an amount received as a lump sum is counted as income only in the month received.6 3437.00.00 CONTRACT SALE OF REAL PROPERTY For the MED 1 and 4 categories, when real property is sold on contract pursuant to a properly executed land sale contract, only the interest portion of the payments are counted as income7. When payments are received on a basis other than monthly, the interest payments are to be prorated to establish a monthly amount. For the MED 3 categories, any payments of interest and any gains on the sale received because of the sales contract (including that portion of any periodic payment) is to be budgeted as income in the month of receipt. 3455.00.00 BENEFIT CALCULATION (MED 1) The policies in this section apply to the MA A, MA B, and MA D categories of assistance. Eligibility for MA regarding income is based on the countable income of the individual and his financially responsible relatives. Situations in which income is deemed from parents and spouses are identified in the following sections. The budgeting process consists of two steps: eligibility and post-eligibility. \The eligibility step is completed for every AG. Refer to Section 3455.05.00. For individuals in long term care (LTC), the post-eligibility step is also completed to determine the patient liability if the AG has passed the eligibility step. Refer to Section 3455.15.00. More detailed information regarding the circumstances which require a particular budgeting procedure pertaining to situations involving an institutionalized applicant/recipient with a community spouse can be found in Sections 3455.05.05, 3455.15.10, 3455.15.10.10, and 3455.15.10.15. Refer to Section 2635.10.10 for eligibility information regarding an institutionalized applicant/recipient with a community spouse.

3455.05.00 ELIGIBILITY BUDGETING (MED 1) The policies in this section apply to the MA A, MA B, and MA D categories of assistance. In the eligibility budgeting procedure, the total non-exempt unearned and earned income, less allowable deductions, is compared to the appropriate income standard in Chapter 3000. If the resulting amount is equal to or less than the appropriate income standard, the individual is financially eligible.