Kansas Family Medical Assistance
Manual (KFMAM)
Eligibility Policy - 4/19/2024
05000 >>> 05220 >>> 5220 >>> 5220.06
5220.05
5220.06 Lottery/Gambling Winnings - Gambling winnings from any source are treated as unearned income in the month received. Gambling winnings are generally cash, prizes or in-kind items won in a game of chance, including but not limited to lotteries, sweepstakes, wagering pools, bingo games, card games, roulette wheels, dice games, slot machines, or any other game involving an element of chance.
Gross amounts are counted even if taxes are taken out prior to paying the household. Gambling winnings are countable using prospective income budgeting standards per 06100 only if the income is expected to continue. In the case of qualified lottery and gambling winnings of $80,000 or greater received in a single payout, the income is to be counted in the month received through a period of up to 120 months, as determined by a formula provided by the 2018 statute, see T5 Gambling Winnings – Income Budgeting Table. Per federal guidelines, states must apply this formula to qualified lottery or gambling winnings received on or after January 1, 2018.
With the exception of winnings resulting from games conducted by a tax-exempt religious or charitable organization, any winnings from a lottery, sweepstakes or wagering pool sponsored by a state, multi-state or multi-jurisdictional lottery organization, or any lump sum winnings from bookmaking, slot machine, roulette wheel, dice table, lottery, numbers game, or similar game of chance conducted by a private or for-profit individual or organization shall be counted in accordance with the T5 Gambling Winnings – Income Budgeting Table. Information received on the application or verbally from the consumer regarding the date of receipt and the gross amount of winnings shall be used by KEES to calculate the monthly amount to be budgeted for this income.
Note: With respect to non-cash prizes, like car or boat, these should continue to be considered as lump-sum income in the month received.
Continued eligibility shall be granted where the counting of income as indicated in this section results in ineligibility and loss of coverage and causes undue medical or financial hardship. For purposes of this provision, hardship shall be defined as follows:
1. Medical Hardship – The individual must demonstrate that the loss of eligibility put the individual at risk of death or permanent disability without the medical coverage.
2. Financial Hardship – The individual must demonstrate that the gambling winnings being counted as income are no longer accessible or available to meet medical needs.
When hardship is granted, the gambling winnings shall no longer be counted as income in determining eligibility beginning with the month the hardship was requested.