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Families and Children Manual Policy Manual Number: 010.020 Section: Financial Eligibility Chapter: Countable and Excluded Income

September 1, 2026 Division of Tenncare 13 slot machines, roulette wheels, dice tables, lotteries, bolita or numbers games and selling of chances. Non-cash prizes are not considered Qualified Lump Sum Income. 3. Qualified Winnings Formula There is a formula applied to determine countable income for the individual who is receiving Qualified Winnings. The formula does not apply to other household members. For other household members, Qualified Winnings are only countable in the month received. Qualified Winnings are countable for the individual who received the winnings as follows: i. Winnings less than $80,000 are countable in the month received; ii. Winnings from $80,000 up to $90,000 are counted as income over two months, with an equal amount counted in each month; iii. For each additional $10,000 an additional one month is added to the period for which total winnings are divided. The maximum period of time over which Qualified Winnings may be counted is 120 months. Example: Martha is pregnant and applies for Medicaid on February 7th. She purchases a lottery ticket on February 15th and wins a lump sum of $93,000. Since she received over $90,000 in winnings, her winnings will be counted over 3 months. Unearned income of $31,000 is countable in the February, March and April budgets. 4. Qualified Winning Hardship Exemption Individuals ineligible for MAGI categories due to Qualified Winnings will be reviewed for Non-MAGI categories. Individuals ineligible for Medicaid, TennCare Standard, or CoverKids due to Qualified Winnings will be provided a form to request a hardship exemption for undue medical or financial hardship, and will be notified of the date winnings will no longer count toward their eligibility determination. If an individual’s Qualified Winnings causes them to exceed the MAGI income limit and denial or termination would result in hardship, then TennCare may continue their coverage. An individual must submit an undue hardship waiver for review prior to continuing TennCare coverage. vii. Income Producing Resource Income received from an income producing resource is countable in the month of receipt. Income producing resources include: 1. Contract for Deeds;