414.21  Transitional medical benefits.--

(1)  A family that loses its temporary cash assistance due to earnings shall remain eligible for Medicaid without reapplication during the immediately succeeding 12-month period if private medical insurance is unavailable from the employer or is unaffordable.

(a)  The family shall be denied Medicaid during the 12-month period for any month in which the family does not include a dependent child.

(b)  The family shall be denied Medicaid if, during the second 6 months of the 12-month period, the family's average gross monthly earnings during the preceding month exceed 185 percent of the federal poverty level.

(2)  The family shall be informed of transitional Medicaid when the family is notified of the termination of temporary cash assistance. The notice must include a description of the circumstances in which the transitional Medicaid may be terminated.