It is stated in this link that it is not considered income (Medicaid payment): <a rel="nofollow" target="_blank" href="
https://www.irs.gov/irb/2014-4_IRB/ar06.html#d0e451">https://www.irs.gov/irb/2014-4_IRB/ar06.html#d0...>
Look under the Guidance section.
