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C. Retroactive Medicaid Eligibility. (1) Medicaid eligibility may be established retroactively up to the first day of any month in the three month period prior to the month of application provided the individual received Medicaid covered services at any time during that period and the individual would have been eligible for assistance at the time he received the services if he had applied. Persons found ineligible for Medicaid in the current month may be eligible for retroactive Medicaid. Prior approval shall not be required for medical services rendered during a period of retroactive Medicaid eligibility. (2) Posthumous application may be made on behalf of deceased individuals. The individual must have been eligible for Medicaid when the services were rendered. The application must be filed before the end of the third month following death for any benefits to be received. D. Medicare. Medicaid recipients who are eligible for Medicare benefits are automatically enrolled in the Supplemental Medical Insurance (SMI) Program (Part B). The State pays the premiums for Medicaid eligible persons who are enrolled in Part B. E. Agreement With Social Security. The Health and Human Services Finance Commission (Com- mission) has an agreement with SSA under section 1634 of the Social Security Act for determining Medicaid eligibility for individuals who receive SSI. 126–365. Categorically Needy Eligible Groups. A. Medicaid eligible persons through the Aid to Families With Dependent Children (AFDC) program are: (1) All persons in the AFDC budget group. (2) All children for whom the State makes an adoption assistance or foster care maintenance payment under Title IV E of the Social Security Act. (3) Families terminated from AFDC because of increased earnings or hours of employment as provided for and limited by Title XIX of the Social Security Act and the federal regulations promulgated in accordance therewith. (4) Individuals who are denied a cash payment solely because the amount of the AFDC payment would be less than $10. (5) Pregnant women who would be eligible for an AFDC cash payment if the child had been born and was living with her in the month of payment and the pregnancy has been medically verified. Income shall be measured against the AFDC total requirements standard for one person. (6) Individuals who are ineligible for AFDC because of requirements that do not apply under Title XIX of the Social Security Act. These individuals are identified in the Title XIX State Plan for Medical Assistance. B. Individuals Under Twenty-one (21) With Special Living Arrangements. (1) Medicaid is available to individuals who are younger than twenty-one (21) years of age, residing within or outside the State in foster homes or private institutions licensed by the Department of Social Services, or who live in foster care homes or institutions licensed by other state agencies, but whose standards have been approved by the Department of Social Services. To be Medicaid eligible, the individual must receive a regular foster care board payment, or a payment for maintenance under a Social Services Block Grant (SSBG) contract, or be supported fully or partially from public funds of any State or local agency. The income and resources available to the individual shall not exceed the appropriate foster home care board payment standard for the individual’s age and the AFDC resource limitation. (2) Hospitalization prior to placement in a substitute care facility may be necessary in certain situations. As long as it is planned for the individual to enter foster care upon release from the hospital and the individual meets all other eligibility criteria for Medicaid as an individual under twenty-one (21) with special living arrangements, the individual may be certified for Medicaid while in the hospital. (3) An individual who is placed in foster care in emergency placement status under SSBG may be eligible for Medicaid while in the emergency placement, public or private, as long as all eligibility criteria for Medicaid as an individual under twenty-one (21) with special living arrangements are met.