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(d) Termination of Medical Assistance may not become effective under § B(3)(c) of this regulation until the Department has provided the family with notice of the grounds for termination. The notice shall include, in the case of termination under § B(3)(e)(ii) of this regulation, a description of how the family may reestablish eligibility for Medical Assistance.

(e) Continuation in Certain Cases Until Redetermination.

(ii) With respect to a person who would cease to receive Medical Assistance under § B(3)(c)(i), (ii), or (iii) of this regulation but who may be eligible for Medical Assistance under this chapter, the Department may not discontinue Medical Assistance until the Department has determined that the person is not eligible for Medical Assistance under this chapter.

(4) Disqualification for Fraud. Extended Medical Assistance may not be provided to a person who is a member of a family which received AFDC if the Department determines that, at any time during the last 6 months in which the family was receiving AFDC before otherwise receiving extended Medical Assistance under this section, the person was ineligible for AFDC because of fraud.

C. The following persons shall apply for Medical Assistance and, if determined eligible, are covered as Categorically Needy:

(1) A person who would be eligible for AFDC, SSI, or Optional State Supplement benefits except for a requirement of those programs that is specifically prohibited under Title XIX.

(2) A person who:

(a) In August, 1972, was entitled to Old Age, Survivors, and Disability Insurance, and:

(i) Was receiving AFDC, Old Age Assistance, Aid to the Permanently and Totally Disabled, or Public Assistance to the Needy Blind;

(ii) Was not receiving AFDC, Old Age Assistance, Aid to the Permanently and Totally Disabled, or Public Assistance to the Needy Blind but would have been eligible if he had applied; or

(iii) Would have been eligible for AFDC, Old Age Assistance, Aid to the Permanently and Totally Disabled, or Public Assistance to the Needy Blind if he were not in a medical institution or intermediate care facility.