Page 2

2. The child’s specified caretaker relative (who is not the child’s parent) when they are receiving Medicaid only because they are the child’s specified caretaker relative. Children will not lose Medicaid eligibility based solely on the responsible adult failing to comply with these requirements. However, children may lose Medicaid eligibility due to the reduced household size when the adult is in non-compliance. Children who lose eligibility due to the reduced household size are not eligible for HMK. NOTE: Eligibility staff members do not need to pursue health insurance TPL information from SSI cash assistance recipients. TPL information for these individuals is processed through Central Office. INDEMNITY INSURANCE POLICIES: Indemnity insurance policies pay based on a specific event occurring rather than general insurance policies that pay for a wide range of illness and medical needs (e.g., pays $50 per day while the insured is hospitalized, pays $600 if a medical doctors treats the insured for an accident-related injury). Medicaid does not consider indemnity policies to be TPL. These policies are not entered on the system, and premiums are not used to reduce the spend down. Indemnity policy payments are considered income to the recipient in the month received rather than being considered a reimbursement or TPL. NOTE: If the recipient has a history of receiving indemnity payments and the payments are expected to continue, or if any payment can be anticipated, it may be necessary to adjust future income (see 501-1). Effective Date: July 01, 2016