Medicaid Policy                                                                 

531-1 SSI, SSA and Railroad Retirement Board Lump Sums

Effective Date: January 1, 2014

Contact DHHS Policy Specialist for Previous Policy

Medically Needy Family, Child and Pregnant Woman; Aged, Blind and Disabled, and Long-Term Care

1.   All lump sums consisting of SSI, SSA or Railroad Retirement are exempt assets for 9 months after the month of receipt.  Lump sums consisting of SSA benefits or Railroad Retirement benefits are countable as income in the month of receipt. SSI lump sums are not countable as income.  (See Section 417-17.)  

2.   SSI lump sums are countable as income only for institutional and HCB Waiver members.  (See Sec. 417-17.)

3.    Social Security requires that some large SSI lump sum payments be paid in installments.  The installment payments should be made six months apart.  If a member receives an SSI lump sum in installments, the nine-month exclusion period for each such payment begins the month after receipt of each payment.  (The receipt of installment payments of retroactive SSI benefits does not mean that the person is currently considered an SSI recipient.)