When your income increases, you may lose eligibility for cash assistance on the TANF program. But you should continue to receive full Medicaid coverage. This is called “Transitional Medicaid.”

In New Jersey, you will continue to get Transitional Medicaid for 24 additional months if you lose TANF or AFDC-related Medicaid for any of these reasons:

• Your income increases because you earn more money from your job or you get another job;
• Your income increases because you are paid for working additional hours; or
• You are receiving New Jersey state unemployment or temporary disability insurance benefits.

In New Jersey, you will also receive Transitional Medicaid for four additional months if you lose TANF or AFDC-related Medicaid because you start receiving child support or spousal support through the Child Support and Paternity process. But you must have either received or been eligible for Medicaid in at least three of the previous six months before your income increased.

If you have been terminated from Medicaid because of increased income from your job or because of support payments, and you were not given Transitional Medicaid, please contact your local Legal Services office or call LSNJ-LAW™, Legal Services of New Jersey’s statewide, toll-free legal hotline, at 1-888-LSNJ-LAW (1-888-576-5529) for immediate assistance.

This article appeared in the November 2004 issue of Looking Out for Your Legal Rights^®.

Last legal review 3/10/05.