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Title 8: Medicaid Page 35 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

Finally, the combined new earnings and new social security benefits are compared to the FMAP limits for a two-person eligible group. The countable income exceeds limits. Mrs. E and her child are eligible for transitional Medicaid if all other eligibility factors are met. 5. Mrs. M and her child receive Medicaid under FMAP. In March, Mrs. M’s earnings increase and her child begins receiving social security benefits. First, ignoring the social security income, Mrs. M’s increased earnings are compared to FMAP limits for a two-person eligible group. The countable income does not exceed FMAP limits. Then, ignoring the increase in earnings, Mrs. M’s earnings before the increase and the new social security income are compared to FMAP limits for a two-person eligible group. The countable income does exceed limits. Mrs. M and her child are not eligible for transitional Medicaid, since the increased earnings alone did not create FMAP ineligibility, and the other change in circumstances alone did create FMAP ineligibility. 6. The household consists of Ms. L and two children. The family receives FMAP. Ms. L’s countable earned income is $380 per month. She receives an increase in earned income. Her countable earned income is now $420. When she reports her raise, she also reports that one of her children has moved out of the home. Step 1. Does the increase in earned income result in FMAP ineligibility if the other changes in circumstances had not happened? No ($420<$426). Go to step 2. Step 2. Does the loss of a household member result in FMAP ineligibility if the earned income had not increased? Yes ($380>$361). There is no transitional Medicaid eligibility, since the loss of a household member alone causes ineligibility for FMAP. FMAP is canceled for income exceeding the two-person FMAP limit, not due to the increased earned income.