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2. Worker's Compensation Settlements, Inheritances, Retroactive payments of RSDI, VA, and Unemployment Insurance 3. General Treatment of Lump Sum Income – For all IHCC groups subject to the SSI methodology, the following are excluded from lump sum income: a. Costs associated with getting the lump sum, such as attorney's fees. b. Any portion of the lump sum earmarked for and used to pay health expenses not covered by Medicaid or another form of insurance. c. Any portion of the lump sum recovered by the EOHHS or its agents. d. Any portion of the lump sum earmarked for and used to pay funeral and burial costs upon the death of a spouse or child. 4. RSDI and SSI Payments – When eligibility for RSDI and SSI benefits are first approved, beneficiaries often receive a one (1) time payment that includes retroactive payments back to the date of a disability. These RSDI and SSI payments are lump sums, and are treated somewhat differently depending on the person’s Medicaid eligibility pathway: a. SSI/SSP Pathway. Retroactive lump sum payments of SSI and all other lump sum income (including RSDI) of an SSI/SSP recipient are excluded even if the lump sum is a retroactive payment for a period in which the recipient is a Medicaid beneficiary. The only exception is that any portion of a lump sum payment that is designated as a benefit for a dependent of the beneficiary is counted as unearned income to the dependent in the month received. b. Community Medicaid, MPPP, and Medicaid LTSS pathways. (1) Retroactive RSDI lump sum payments are counted as unearned income in the month received. If the beneficiary is not receiving SSI, the RSDI payment is a resource in the following month if retained. RSDI payments are not counted as a resource for nine (9) months once converted from income. (2) Retroactive lump sum payments of SSI are excluded as income and resources in the month received. (3) Any retroactive SSI or RSDI lump sum payment received before March 2, 2004 is excluded as a resource.