On my michigan tax return I am asked if MDHHS is received as it is considered a Household Resources. I get Medicaid. Is this considered a source of household resources?

No, Medicaid is not considered a household resource. 

(MDHHS (MI Department of Health and Human Services) benefits are included)

See: MI CHECKLIST FOR DETERMINING TOTAL HOUSEHOLD RESOURCES for a list of items included in total household resources.