When component 21D ends, due to the expiration of the twelve months time limit and the participant is still working, review eligibility criteria and budget the earned income to determine continued eligibility. If the case is no longer cash eligible, authorize Transitional Medicaid (TM) unless:
- The current period of Wage Supplementation and previous cash assistance would not equal three months out of the last six months; or
- There is no longer an eligible child in the home.
Transitional medicaid eligibility begins with the first month after wage supplementation ends. Notice of adverse action is required prior to placing the case on TM. This action must be completed by the payroll closing date in the month that wage supplementation ends.
If participation ends for any other reason, reinstate the case to the “frozen” grant amount and immediately complete a review of eligibility on all factors, using normal criteria. If reduction or termination of assistance is indicated, a notice of adverse action is required prior to taking action. NOTE: If a grant diversion is issued to an employer for a month in which the individual was not working and will not receive wages, the employer is required to return the diversion amount to FSD. Issue a retroactive payment if a diversion payment to the employer is pulled or returned and the individual is eligible for a cash grant.