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Transitional Medicaid - Increased Earned Income - Iowa

Transitional Medicaid is available to families who are canceled from the Family Medical Assistance Program (FMAP) due to:

·           Increased earned income of a specified caretaker relative, or

·           A combination of earned income and other factors which create ineligibility.

"Family" consists of:

·           Those persons living in the household whose needs and income were included in determining the FMAP eligibility of the household members at the time the FMAP benefits were terminated,

·           Children or specified relatives who begin to reside in the household during transitional period, and

·           Persons under sanction whose income but not needs were included.

The earned income must be the earnings of a specified caretaker relative of a dependent child who:

·           Is in the eligible group, or

·           Is not a member of the eligible group, but whose income must be considered in the eligibility determination, or

·           Returned to the home and whose income and needs must be considered in the eligibility determination.

Ms. T reports the return of the absent parent. Ms. T’s income and the absent parent’s income creates ineligibility for FMAP. Therefore, the family (Ms. T, absent parent and children) is eligible for transitional Medicaid.

See Specified Relatives, for a definition of specified relative. Transitional Medicaid eligibility does not exist if the income creating ineligibility for FMAP belongs to a stepparent who:

·           Is not a member of the FMAP eligible group, or

·           Is in the eligible group but has not assumed the role of the caretaker.

See Also:

·           FMAP Nonfinancial Eligibility

·           Medicaid for Employed People with Disabilities (MEPD)

·           Overview of Medical Assistance in Iowa

·           Welcome and Introduction to Benefits in Iowa

Source: Iowa Dept of Human Services Employees’ Manual

Title 8 Medicaid

·                        Chapter F, Coverage Groups, Transitional Medicaid

Legal reference: P.L. 100-485, 441 IAC 75.1(31)

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