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Title 8: Medicaid Page 83 Iowa Department of Health and Human Services Employees’ Manual Chapter F: Coverage Groups Non-MAGI-Related Coverage Groups Revised May 22, 2026 People Ineligible for SSI (or SSA) They were canceled from SSI or SSA effective July 1, 1987, or later because they became entitled to social security benefits from a parent’s account, or they received an increase in those benefits. They would continue to be eligible for SSI or SSA if not for the social security benefits or increased benefits from the parent’s account. Social security benefits from a parent’s account are available for disabled adult children whose disability began before the age of 22, including people who are blind. When the parent begins receiving social security benefits upon retirement or disability, the adult child may also become eligible for benefits based on the parent’s account. Survivor’s benefits are also available for a disabled adult child. It is possible for the adult child to draw benefits from the parent’s account as well as drawing benefits on the adult child’s own social security account.
Mr. P, a 28-year-old resident of an ICF-ID, is receiving SSI because of a disability that began before he turned 22. He has no income. His father starts to draw social security retirement benefits. Mr. P begins receiving $1,050 a month social security benefits from his father’s social security account and he loses SSI. Mr. P continues to be eligible for Medicaid under the coverage group for people ineligible for SSI or SSA due to social security benefits paid from a parent’s account. The SDX identifies people who lost SSI eligibility due to social security benefits from a parent’s account with a medical eligibility code of “D” and a code indicating that the person is over income for SSI. The Social Security Administration does not review ongoing eligibility for this Medicaid coverage group. The DHS income maintenance worker must complete reviews and determine ongoing eligibility. Due to Social Security Increase of October 1972 Legal reference: 42 CFR 435.134, 441 IAC 75 (Rules in Process) Medicaid may be available to a person who meets all of the following conditions: Was entitled to receive social security benefits in August 1972.