Hello Isher,
This link may (or may not) help you. In my VERY quick read of it
The portion of the award from before he was on medicaid should not be counted as income by medicaid - after medicaid, it is theirs.
So, if not income there is still the asset hurdle to pass - my (again very quick) read would be if you have appropriate documentation that the amounts owed to you (or others) relate to the months that are prior to his being on medicaid that you have a very good argument for keeping those monies - you would want to get them out of his name in the month of receipt - not that I saw that as an Arkansas regulation in revewing this, but that is a common regulalation, that the assets must be below $2,000 by the end of the month, end of the next month after receipt etc - since I didn't see it I would assume the most draconian to cover myself.
http://www.arkansas.gov/dhs/webpolicy/Medical%20Services/MS%203000.htm#MS_3348.1 
Ok, lots of good reading there, a brief overview shows some guidelines for Aid and Attendance. I will parse the applicable sections and see if there's some hope.
This is very helpful and very much appreciated.
Thanks,
Isher
P.S. Lawyers don't seem to know much about A&A