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Title 8: Medicaid Page 85 Iowa Department of Health and Human Services Employees’ Manual Chapter F: Coverage Groups Non-MAGI-Related Coverage Groups Revised October 10, 2025 People Ineligible for SSI (or SSA) Due to Actuarial Change for Widowed Persons Legal reference: 42 CFR 435.137, 441 IAC 75 (Rules in Process), P.L. 99-272 Medicaid is available to all current social security recipients who meet the following conditions:  They were eligible for social security in December 1983.  They were eligible for and received a widow/widower’s disability benefit and SSI or SSA for January 1984.  They became ineligible for SSI or SSA because their widow/widower’s benefit increased as a result of the elimination of the reduction formula in January 1984. This must be the sole reason they lost eligibility for SSI or SSA.  They would be eligible for SSI or SSA benefits if the increase resulting from the elimination of the reduction factor and later cost-of-living adjustments were disregarded.  They have been continuously eligible for a widow/widower’s benefit from the first month the increase was received.  They applied for Medicaid before July 1, 1988. In January 1984, the Social Security Administration eliminated a “reduction formula” that had been used to calculate social security benefits for disabled widows and widowers. As a result, social security benefits increased. The increase caused some members of this group to lose eligibility for SSI, SSA, and Medicaid. Congress established a new eligibility group to allow ongoing Medicaid eligibility for these persons. No new persons can enter this coverage group after July 1, 1988. For those who applied before July 1, 1988, and were approved under this group, review whether the person:  Has been continuously eligible for social security widow/widower’s benefit, and  Still meets SSI or SSA standards, including income, if the specified social security increases are disregarded. Determine countable income using SSI policies. Deduct from current gross social security income the amount of the increase resulting from the