(1) in subsection (a)(17), by striking ‘‘(e)(14), 
(e)(14)’’ and inserting ‘‘(e)(14), (e)(15)’’; and 
(2) in subsection (e)— 
(A) in paragraph (14) (relating to modified 
adjusted gross income), by adding at the end 
the following new subparagraph: 
‘‘(J) TREATMENT
OF
CERTAIN
LOTTERY 
WINNINGS AND INCOME RECEIVED AS A LUMP 
SUM.— 
‘‘(i) IN GENERAL.—In the case of an 
individual who is the recipient of qualified 
lottery winnings (pursuant to lotteries oc-
curring on or after January 1, 2018) or 
qualified lump sum income (received on or 
after such date) and whose eligibility for 
medical assistance is determined based on 
the application of modified adjusted gross 
income under subparagraph (A), a State 
shall, in determining such eligibility, in-
clude such winnings or income (as applica-
ble) as income received— 
‘‘(I) in the month in which such 
winnings or income (as applicable) is 
received if the amount of such 
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winnings or income is less than 
$60,000; 
‘‘(II) over a period of two months 
if the amount of such winnings or in-
come (as applicable) is greater than or 
equal to $60,000 but less than 
$70,000; 
‘‘(III) over a period of three 
months 
if 
the 
amount 
of 
such 
winnings or income (as applicable) is 
greater than or equal to $70,000 but 
less than $80,000; and 
‘‘(IV) over an additional one- 
month period for each increment of 
$10,000 of such winnings or income 
(as applicable) received, not to exceed 
120 months (for winnings or income 
of $1,240,000 or more), if the amount 
of such winnings or income is greater 
than or equal to $80,000. 
‘‘(ii) COUNTING IN EQUAL INSTALL-
MENTS.—For 
purposes 
of 
clause 
(i), 
winnings or income to which such clause 
applies shall be counted in equal monthly 
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installments over the applicable period of 
months specified in such clause. 
‘‘(iii) QUALIFIED LOTTERY WINNINGS 
DEFINED.—In this subparagraph, the term 
‘qualified lottery winnings’ means winnings 
from a sweepstakes, lottery, or pool de-
scribed in paragraph (3) of section 4402 of 
the Internal Revenue Code of 1986 or a 
lottery operated by a multistate or multi-
jurisdictional lottery association, including 
amounts awarded as a lump sum payment. 
‘‘(iv) QUALIFIED LUMP SUM INCOME 
DEFINED.—In this subparagraph, the term 
‘qualified lump sum income’ means income 
that is received as a lump sum from one 
of the following sources: 
‘‘(I) Monetary winnings from 
gambling (as defined by the Secretary 
and including gambling activities de-
scribed in section 1955(b)(4) of title 
18, United States Code). 
‘‘(II) Damages received, whether 
by suit or agreement and whether as 
lump sums or as periodic payments 
(other than monthly payments), on 
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account of causes of action other than 
causes of action arising from personal 
physical injuries or physical sickness. 
‘‘(III) Income received as liquid 
assets from the estate (as defined in 
section 1917(b)(4)) of a deceased in-
dividual.’’; and 
(B) by striking ‘‘(14) EXCLUSION’’ and in-
serting ‘‘(15) EXCLUSION’’. 
(b) RULE
OF
CONSTRUCTION.—Nothing in the 
amendment made by subsection (a)(2)(A) shall be con-
strued as preventing a State from intercepting the State 
lottery winnings awarded to an individual in the State to 
recover amounts paid by the State under the State Med-
icaid plan under title XIX of the Social Security Act for 
medical assistance furnished to the individual. 
Æ 
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