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Title 8: Medicaid Page 110 Iowa Department of Health and Human Services Employees’ Manual Chapter F: Coverage Groups Non-MAGI-Related Coverage Groups Revised May 22, 2026 Medicaid for Employed People with Disabilities Comment: When SSA denies a disability due to substantial gainful activity (SGA), the decision is based on verification that the person has earnings of at least $1,690 per month from work. The only payment status code on the SDX that means disability was denied due to substantial gainful activity is N44. If a person’s SDX has code N44, process a disability determination for MEPD. Payment status codes of N31, N32, N42, or N43 indicate denials of disability based on “capacity for substantial gainful activity.” This means that, despite a medical impairment, the person has the ability to perform sedentary, light, or medium work that would allow the person to return to customary past work or other work. Do not process a disability determination when the person has one of these codes. See 8-C, Presence of Age, Blindness, or Disability. Note that attaining substantial gainful activity (SGA) is not considered in determining disability for the MEPD group. See 8-C, When the Department Determines Disability. Income From Employment Legal reference: 441 IAC 75 (Rules in Process) Policy: To qualify for MEPD, the applicant must have earned income from employment or self-employment. “Self-employment” is defined as providing income directly from one’s own business, trade, or profession. Procedure: Determine whether the applicant has earned income from employment in the month of decision.  If the applicant does not have earned income in the month of decision, do not approve current or ongoing eligibility. An exception for ongoing eligibility is found under Intent to Return to Work if Employment Ends.  If the applicant had earned income in the month of application, but has no earned income during the month of decision, • Approve the months with earned income, and • Deny current and ongoing eligibility. The applicant must provide proof that the earned income is from employment or self-employment. For example, employment may be proven by current pay stubs.