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.

This bill amends title XIX (Medicaid) of the Social Security Act with respect to the treatment of certain lottery winnings and income received as a lump sum in determining income eligibility.

A state, in determining the modified adjusted gross income eligibility of a recipient of qualified lottery winnings or qualified lump sum income, may consider such winnings or income as received on a monthly basis if the winnings or income is received in: (1) an amount less than $50,000 over a period of 12 months, or (2) an amount equal to or greater than $50,000 in proportional increments over a state-specified period of up to 240 months.