I 
114TH CONGRESS 
1ST SESSION H. R. 2339 
To amend title XIX of the Social Security Act to clarify the treatment 
of lottery winnings and other lump sum income for purposes of income 
eligibility under the Medicaid program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 14, 2015 
Mr. PITTS introduced the following bill; which was referred to the Committee 
on Energy and Commerce 
A BILL 
To amend title XIX of the Social Security Act to clarify 
the treatment of lottery winnings and other lump sum 
income for purposes of income eligibility under the Med-
icaid program, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. TREATMENT OF LOTTERY WINNINGS AND 
OTHER LUMP SUM INCOME FOR PURPOSES 
OF INCOME ELIGIBILITY UNDER MEDICAID. 
(a) IN GENERAL.—Paragraph (14) (relating to modi-
fied adjusted gross income) of section 1902(e) of the So-
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cial Security Act (42 U.S.C. 1396a(e)) is amended by add-
ing at the end the following new subparagraph: 
‘‘(J) TREATMENT
OF
CERTAIN
LOTTERY 
WINNINGS AND INCOME RECEIVED AS A LUMP 
SUM.— 
‘‘(i) In the case of an individual who 
is 
the 
recipient 
of 
qualified 
lottery 
winnings or qualified lump sum income, 
and whose eligibility for medical assistance 
is determined based on the application of 
modified adjusted gross income under sub-
paragraph (A), a State may, in deter-
mining such eligibility, consider such 
winnings or income (as applicable) as in-
come received on a monthly basis— 
‘‘(I) if such winnings or income 
(as applicable) is received in an 
amount that is less than $50,000, 
over a period of 12 months; and 
‘‘(II) if such winnings or income 
(as applicable) is received in an 
amount that is greater than or equal 
to $50,000, over a period specified by 
the State not to exceed 240 months, 
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in proportion to the amount of the 
winnings or income (as applicable). 
‘‘(ii) DEFINITIONS.—In this subpara-
graph: 
‘‘(I) The term ‘qualified lottery 
winnings’ means winnings from a 
sweepstakes, lottery, or pool described 
in paragraph (3) of section 4402 of 
the Internal Revenue Code of 1986 or 
a lottery operated by a multi-state or 
multi-jurisdictional lottery association 
in an amount that is not less than 
$20,000, including amounts awarded 
as a lump sum payment. 
‘‘(II) The term ‘qualified lump 
sum income’ means income that is re-
ceived as a lump sum in an amount 
that is not less than $20,000, includ-
ing income received from the transfer 
or sale of real or personal property 
from the estate (as defined in section 
1917(b)(4)) 
of 
a 
deceased 
indi-
vidual.’’. 
(b) RULE OF CONSTRUCTION.—Nothing in this Act 
shall be construed as preventing a State from intercepting 
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the State lottery winnings awarded to an individual in the 
State to recover amounts paid by the State under the 
State Medicaid plan under title XIX of the Social Security 
Act for medical assistance furnished to the individual. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to income received 
as a lump sum, or winnings received pursuant to lotteries 
occurring, after a date specified by the State, but not ear-
lier than the date that is 24 months before such date of 
enactment. 
Æ 
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