I have a 1099misc with income in box 7 related to a reimbursement from Medicaid for travel expenses from taking my kid to the doctor. Is this income taxable? Fed? NYS?

I have a 1099misc form from a company called Medical Answering Services. In box 7 they have listed $1,600 of nonemployee income. This is a reimbursement through Medicaid for mileage, hotel, and meal expenses related to doctor's appointments for my daughter who is disabled and has a Medicaid waiver. Is this taxable on Federal taxes? NYS?