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Title 8: Medicaid Page 39 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 A family receiving transitional Medicaid is not required to report income changes except at review time. If you receive a report of change in income, take no action until the review. If the family income decreases to within the FMAP limit, explain the benefits to the family so they can make an informed decision. If the family applies for or requests another coverage group, complete a redetermination of eligibility. Notices When a person moves from FMAP to transitional Medicaid, a Notice of Action is not generated. There may be situations when a household has individuals in different coverage groups. When at least one FMAP member becomes eligible for transitional Medicaid, the other household members may join the transitional Medicaid group. In this situation, the ELIAS system automatically generates a Notice of Action to an IHAWP or Hawki individual to inform them they no longer owe a premium. Effective Date of Change Legal reference: 441 IAC 75 (Rules in Process) When a transitional Medicaid eligible group reports a change in circumstances, the effective day of the change depends on the type of change. When the change is reported timely, determined the effective date as follows:

Change Effective Date Child who is not in school or will not finish school before reaching age 19:

 Turns 18 on the first day of the month Remove child from TM effective the first day of the birthday month. If child is the only child in the TM group, cancel TM effective the first day of the birthday month.