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Title 8: Medicaid Page 12 Iowa Department of Health and Human Services Employees’ Manual Chapter G: Case Maintenance Reinstatement Revised November 4, 2022 Grace Period Reinstatement Legal reference: 441 IAC 7.7(249A), 7.7(6), and 76 (Rules in Process) Policy: Eligibility shall be reinstated without a new application when eligibility can be reestablished: ▪ Before the effective date of cancellation, or ▪ After the effective date of cancellation as allowed under Grace Period. Comment: If you can process the information and make all necessary computer entries before the effective date of cancellation, the case can be reinstated even if the system does not process the information until after the effective date of cancellation. Procedure: Issue adequate and (if appropriate) timely notice whenever an attempt at reinstatement is made. See 8-A, Notification, for notification requirements. When a notice to cancel is issued and the member resolves the issue but should be canceled for another reason or should be reinstated with higher client participation, send timely and adequate notice of the new action, unless listed under 8-A, When Timely Notice Is Not Required. If the additional timely notice required for a second reason cannot be issued in time to be effective the first day of the immediately following month, reinstate the case with the former client participation amount. Then, issue the second timely notice to cancel the case or increase client participation effective the first day of the second following month. You cannot increase client participation on a canceled case during the reinstatement process unless you give timely notice. The fact that you have already issued a Notice of Decision or Notice of Action to cancel a case does not stop you from manually issuing a second notice when a new reason for cancellation occurs. The member then must resolve both issues before assistance can be reinstated. Grace Period Legal reference: 441 IAC 76 (Rules in Process) Policy: A “grace period” is a specific period of time during which a member has the opportunity to “cure” the reason for cancellation. The grace period is defined as the 14 calendar days immediately following the effective date of cancellation. If the fourteenth day falls on a weekend or state holiday, the fourteenth day is extended to the next business day for which there is regular mail service.