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What Happens to Medical Coverage When My Income Changes?


TANF Recipients: You Should Not Lose Your Medicaid Because Your Income Increases 

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.

New Jersey currently calls its Medicaid program for families with TANF NJ FamilyCare. If you no longer have TANF because you fit into one of the descriptions above, you have Medicaid if you have NJ FamilyCare Plan A. If you lose TANF for reasons other than work, you may still be eligible for continued health care assistance. See the NJ FamilyCare website for more information.

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 regional Legal Services office or call LSNJLAWSM, Legal Services of New Jersey’s statewide, toll-free legal hotline, at 1-888-LSNJ-LAW (1-888-576-5529) for immediate assistance.​