what is transitional medicaid

Transitional Medicaid is a program that provides a time-limited extension of Medicaid eligibility to individuals who lose their Medicaid coverage due to earnings or hours of employment. The purpose of this program is to encourage individuals to work more and earn more without the disincentive of losing Medicaid coverage. The program provides up to 12 months of continued Medicaid coverage to families who become ineligible for Medicaid due to earnings or hours of employment. During this period, individuals can continue to receive Medicaid benefits while they work to increase their income and transition to private medical insurance. The eligibility criteria, number of extension periods, applicable income standard used, and medical assistance provided under this program are described in the Medicaid State Plan Eligibility Eligibility Groups. Transitional Medicaid is available in all 50 states and the District of Columbia.