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June 1998

The Department of Human Services offers Medicaid and Child Care Assistance programs to help those who no longer get FIP benefits due to increased earnings or child support.  The main programs are Transitional Child Care (TCC) and Transitional Medicaid.

TRANSITIONAL CHILD CARE
Transitional Child Care (TCC) is for working parents who no longer get FIP.  The program helps pay child care expenses.  TCC can last for up to 24 continuous months.

Who Is Eligible? 
The parent must request a TCC assistance form from the Department of Human Services and have received FIP benefits for at least three of the past six months before FIP was cancelled.

The household must also agree to pay a share of the assessed child care fees and to cooperate with the Child Support Recovery Unit (CSRU).  In order to be eligible, the reason for the end of FIP benefits must have been increased earnings or receipt of child support, or a voluntary request to end FIP benefits. 

VOLUNTARY TERMINATION OF FIP
A parent or caretaker relative may also be eligible for TCC if they have earned income and voluntarily ask for FIP to stop.

New FIP rules set a lifetime limit for receiving FIP benefits.  The five year (60 month) lifetime limit took effect January 1, 1997.  In some cases, it may be better to cancel FIP and use TCC instead of using a month of FIP eligibility.

How Old Can My Child Be and Still Get TCC?
The child must be under age 13; or under court supervision; or over age 13 and physically or mentally incapable of self-care.

When Does TCC Start?
The TCC eligibility period begins with the first month the household is ineligible for FIP.  It lasts for 24 consecutive months.

Can I Choose Any Child Care Provider?
TCC can be used to pay for most forms of child care, as long as the provider is over 18 and is not the parent or guardian of the child.

Does TCC Pay All of My Child Care Costs?
TCC pays for part of the cost of child care.  The parent also pays a portion of the cost.  The amount paid by the parent is based on household size and income.  The parent pays their share directly to the child care provider.  The provider then bills DHS for the remainder of the cost each month.  If a parent fails to pay his or her share to the provider, TCC can be terminated.

What Changes Do I Need to Report to DHS?
Changes in the number of hours of child care and changes in income or who is in the household need to be reported.  A change in provider or number of children getting assistance needs to be timely reported to DHS.

The Department of Human Services reviews eligibility for TCC once a year and when changes are reported.  During the yearly review, the parent and provider must complete a new agreement and the parent must provide requested verification.

Can TCC Benefits Be Terminated?
TCC benefits can be terminated if:  (1) the household becomes eligible for FIP; (2) the parent is no longer employed; (3) the parent does not pay their assessed share of child care costs to the provider; (4) the parent quits work without good cause; (5) the parent fails to cooperate with the Child Support Recovery Unit (without good cause). 

TRANSITIONAL MEDICAID
Persons who are cancelled from FIP benefits due to increased earnings or a combination of earned income and other factors which make them ineligible may still qualify for Medicaid through the Transitional Medicaid program.  Before Medicaid benefits are cancelled, DHS must find out if any household members would be eligible under another Medicaid program.

Who Is Eligible?
A household applying for Transitional Medicaid must meet all of the following conditions:

1. It must have received FIP or FMAP (Family Medical Assistance Program) for at least three of the past six months.
2. It must include a child who was a member of the FIP household at the time of cancellation.
3. It must include the caretaker or parent whose earned income created ineligibility for FIP.

How Long Do Transitional Medicaid Benefits Last?
Benefits can last for up to 12 months.  After six months, eligibility is redetermined and a new decision is issued.  Unlike the first six months of benefits, eligibility for the last six months is based, in part, on income.  Gross earnings for the last three months must be less than 185 percent of poverty level.  In addition, the caretaker or parent must have earned income for each of the last three months, unless good cause exists.

OTHER TYPES OF MEDICAID COVERAGE
Several other Iowa Medicaid programs are available which may provide Medicaid coverage to your household.  Ask your DHS worker about the Child Medical Assistance Program (CMAP); Mothers and Children Program (MAC), and the Medically Needy Program.

EXTENDED MEDICAID
Extended Medicaid benefits are available to persons who become ineligible for FIP due to receipt of child or spousal support.  Extended Medicaid lasts for four months.  To qualify, the household must have received FIP for three of the previous six months before the month of cancellation.

If you have questions about these programs, or need help with income maintenance legal issues, contact Iowa Legal Aid.  To find out which regional office serves your county, call 1-800-532-1275.