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Title 8: Medicaid Page 19 Iowa Department of Health and Human Services Employees’ Manual Chapter B: Application Processing Processing Standards Revised October 17, 2025 Grace Period Following the Denial… Grace Period Following the Denial of an Application Legal reference: 42 CFR 435.902, 441 IAC 76 (Rules in Process) Policy: A “grace period” is a specified period of time during which an applicant has the opportunity to “cure” the reason for the denial of an application. The grace period is defined as the 14 calendar days immediately following the date of denial. “Day one” of the 14-day grace period is the day following the date printed on the notice of decision. If the 14th day falls on a weekend or a state holiday, the 14th day is extended to the next working day for which there is regular mail service. A previously denied application shall be reconsidered when all information necessary to determine eligibility is provided within 14 calendar days of the date of denial. Any changes reported during the grace period that may affect eligibility must be verified when required by policy and be considered in the eligibility determination. If the applicant is eligible, the original filing date of the application establishes the effective date of eligibility. The effective date of eligibility is the first day of the month an application was filed or the first day of the month in which all eligibility factors were met, whichever is later. Comment: The grace period does not apply to late payment of premiums or noncooperation actions. Denial reasons for which a grace period may apply include, but are not limited to, failure to provide information necessary to determine eligibility and inability to locate the applicant. If the application was denied because mail was returned or the Department was otherwise unable to locate the applicant, a new application is not required if the household contacts the Department within the 14 days, provides a current Iowa address, and eligibility can otherwise be established. Procedure: Based on the circumstances of your case, take appropriate action as follows:  No information provided: When no information is provided by the 14th day after the date of denial, no further action is required.