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If you became financially ineligible for Low Income Families with Children (LIFC) Section 1931 Medicaid because of increased earnings or decrease in the earned income disregard, then all of the earned income will be disregarded for one year from when you lost eligibility.
During that one year period, you will continue to receive Medicaid if you are otherwise eligible.
After that, you and others in your Assistance Unit are eligible for six months of Transitional Medicaid as long as your Assistance Unit continues to include a child living in the home of a parent or specified caretaker relative.
There is no limit on income (earned or unearned) during the 1st six months of Transitional Medicaid coverage.
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