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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200B – Income: MAGI Categories Page |132

Effective Month: July 2025

• For example, a COE-075 married parent with an eligible COE-075 spouse and 3 children wins a $250,000 lottery from another state and receives a lump sum payout of $145,000. o The parent with the winnings will have the $145,000 lump sum counted as income over 8 months, which includes the month of receipt. o The eligible COE-075 spouse and 3 children will have the $145,000 lump sum counted only in the month of receipt. Hardship Exemption The Qualified Lottery and Gambling Winnings provision includes a hardship exemption requirement when an undue medical or financial hardship would be created for the ineligible individual if winnings continue to count toward Medicaid eligibility in months beyond month of receipt. A hardship exemption may be granted if winnings would be depleted by an urgent or chronic medical condition. The ineligible individual must demonstrate the need for urgent, medically necessary treatment, either ongoing or scheduled, and verify that the expense incurred for the treatment would be more than the total countable monthly income remaining from the month the hardship exemption is requested. Hardship exemption requests under this provision will follow the same review process in place to approve/deny other hardship requests when the winnings would be depleted by an urgent or chronic medical condition.

Denial and termination notices must include the period of ineligibility and information about the hardship exemption provision and process.