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Title 8: Medicaid Page 26 Iowa Department of Health and Human Services Employees’ Manual Chapter G: Case Maintenance Additional MAGI-Related Case Maintenance Revised November 4, 2022 Other Changes in the Household Other Changes In the Household The following sections contain more information on what to do when: ▪ A parent returns but is not added to the eligible group. ▪ A person on an active case becomes ineligible. ▪ A child goes into foster care. Returning Parent Not Eligible for Medicaid Legal reference: 441 IAC 75 (Rules in Process) Count the income of a returning parent who is not eligible for Medicaid (e.g., a sanctioned parent or an ineligible adult alien) when determining eligibility unless it is specifically excluded or an allowable expense. Also count the returning parent in the household size. Project income of the returning parent. See 8-E for Projecting Future Income. See Determining the Income of People Added when the returning parent is added to the MAGI-related Medicaid household. Person Becomes Ineligible for Medicaid Legal reference: 441 IAC 75 (Rules in Process) If a Medicaid eligible person is determined to be ineligible for Medicaid, cancel the person’s Medicaid effective the first of the following month allowing a 10-day notice. Household size will be determined according to the tax filing status. If the person is a parent of a child in the household and the parent continues to reside with the household, the parent continues to be counted in the household size. If the person is not a parent of a child in the household, the person may continue to be counted in the household size, based on tax filing status.

1. Child A leaves the household and is removed effective January 1. Child A’s unearned income of $40 per month is not counted when determining eligibility for the remaining members of the household beginning with the month of January. 2. Mr. and Mrs. D receive Medicaid under MAGI-related for themselves and their two children. Mr. D has failed to cooperate with Third Party liability. The worker is notified and Mr. D’s Medicaid is canceled effective the first of the next month, allowing a ten-day notice. Although Mr. D is sanctioned, the household remains a four-member group and Mr. D’s income is used in determining eligibility for Mrs. D and the children.