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 recipient, any remaining amount. This amount must be treated as income or resources under  part 435 or  part 436 of this subchapter, as appropriate.