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Title 8: Medicaid Page 76 Iowa Department of Health and Human Services Employees’ Manual Chapter C: Nonfinancial Eligibility Nonfinancial Non-MAGI-Related Eligibility Revised October 10, 2025 When the Department Determines Disability  No, severe impairments Deny Medicaid as not disabled. Determine if Medicaid eligibility exists under another coverage group. Step 3: DDS staff determines whether the client has an impairment of a severity that meets or equals the severity of impairments listed in the federal regulations. Determination:  Yes, impairment meets severity Go to step 4.  No, impairment does not meet severity Deny Medicaid as not disabled. Determine if Medicaid eligibility exists under another coverage group. Step 4: DDS staff determines whether the client has the ability to perform past work activities. Determination:  Yes, the client can do past work Deny Medicaid as not disabled. Determine if Medicaid eligibility exists under another coverage group.  No, the client cannot perform past work Go to step 5. Step 5: DDS staff determines whether the client is able to perform other work activities at the SGA level. Determination:  Yes, the client can do other work Deny Medicaid as not disabled. Determine if Medicaid eligibility exists under another coverage group.  No, the client cannot perform other work activities Approve Medicaid based on disability if client meets all other eligibility requirements