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Title 8: Medicaid Page 33 Iowa Department of Health and Human Services Employees’ Manual Chapter F: Coverage Groups MAGI-Related Coverage Groups Revised February 28, 2025 People Who are Ineligible for FMAP When an increase in income has not been reported timely, transitional Medicaid shall be available for up to 12 months from the month the change occurred, allowing for timely notice. When at least one person on a case becomes transitional Medicaid eligible, the RE Due Month will need to be manually changed to 12 months from the month transitional Medicaid would have begun had the change been reported timely. The following sections give more information on:  Determining eligibility.  Requirements after eligibility is established.  Notices.  Effective date of changes.  Adding people to the eligible group.  Review requirements. Determining Eligibility Legal reference: 441 IAC 75 (Rules in Process) When the only change in circumstances being considered is an increase in earned income, the FMAP eligible group is eligible for transitional Medicaid if the increase in earned income creates ineligibility for FMAP and all other eligibility factors are met. When other changes in circumstances are being considered at the same time as the increase in earned income, use the following steps to determine if the FMAP eligible group is eligible for transitional Medicaid. 1. Would the increase in earned income have resulted in FMAP ineligibility if the other changes in circumstances hadn’t happened?  Yes. The FMAP eligible group is eligible for transitional Medicaid, if all other eligibility factors are met.  No. Go to question 2. 2. Would the other changes in circumstances have resulted in FMAP ineligibility if the earned income hadn’t increased?  Yes. The FMAP eligible group is not eligible for transitional Medicaid. Explore eligibility under other coverage groups.  No. Go to question 3.