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Families eligible for Transitional Medical Assistance during the entire first six month period and who complete and return the first quarterly report on a timely basis are eligible during the second six month period.

Transitional Medical Assistance eligibility continues during the second six months unless the reasons for ineligibility in the first six months exist or one of the following occurs.

1. The payee fails to complete and return the second or third quarterly reports. See Quarterly Reporting Requirements later in this section.
2. Average monthly earnings less average monthly child care expenses exceed 185% of the poverty level for the assistance group size. See Budgeting for Income Eligibility later in this section.
3. For the second or third quarterly reports, the caretaker relative had no earnings in one or more of the three report months, unless lack of earnings resulted from:
   1. involuntary loss of employment;
   2. illness; or
   3. good cause on the part of the caretaker relative, defined as follows.
   4. The caretaker relative personally provides care for a child under age six and employment requires the caretaker relative to work more than 20 hours a week.
   5. Child care is necessary for the caretaker relative to continue employment and is not available.
   6. Employment results in the family experiencing a net loss of cash income (i.e., if gross income less the standard work expense is less than the Temporary Assistance grant the family received at the time the MAF case was closed). If the claimant reports and verifies work expenses higher than the standard, deduct actual expenses. Gross income includes earnings and unearned income. OR
   7. Circumstances occur beyond the caretaker relative’s control such as a serious illness, hospitalization, or a natural disaster.