MedicaidAdministrativeLow impact
MSA 19-05
Michigan Medicaid - MDHHS·MI·Provider Bulletin
Effective date
May 1, 2019
We identified it
Jun 20, 2026
Summary
Michigan clarified that non-taxable annuity payments from lawsuit settlements may not count toward MAGI income for Medicaid eligibility. Providers must refer cases to the Trusts & Annuities Unit with lawsuit settlement agreements for evaluation.
Action Required
When patients report annuity income from lawsuit settlements: Front desk staff should document this during eligibility verification and refer to the Trusts & Annuities Unit per BEM 401 guidelines, including a copy of the lawsuit settlement agreement for MAGI income determination.