42 CFR 433.154 : Public Health (Part 1 To Parts 1009-1099) — (§ 430.0 To Part 481) — Centers For Medicare & Medicaid Services, Department Of Health And Human Services (Continued) (§ 430.0 To Part 481) — Medical Assistance Programs (§ 430.0 To § 456.725) — State Fiscal Administration (§ 433.1 To § 433.322) — Third Party Liability (§ 433.135 To § 433.154) — Cooperative Agreements And Incentive Payments (§ 433.151 To § 433.154) — Distribution of collections.

The agency must distribute collections as follows -

(a) To itself, an amount equal to State Medicaid expenditures for the individual on whose right the collection was based.

(b) To the Federal Government, the Federal share of the State Medicaid expenditures, minus any incentive payment made in accordance with § 433.153.

(c) To the beneficiary, any remaining amount. This amount must be treated as income or resources under part 435 or part 436 of this subchapter, as appropriate.