[Code of Federal Regulations] [Title 42, Volume 3] [Revised as of October 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 42CFR435.112] [Page 112] TITLE 42--PUBLIC HEALTH CHAPTER IV--CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES (CONTINUED) PART 435_ELIGIBILITY IN THE STATES, DISTRICT OF COLUMBIA, THE NORTHERN MARIANA ISLANDS, AND AMERICAN SAMOA--Table of Contents Subpart B_Mandatory Coverage of the Categorically Needy Sec. 435.112 Families terminated from AFDC because of increased earnings or hours of employment. (a) If a family loses AFDC solely because of increased income from employment or increased hours of employment, the agency must continue to provide Medicaid for 4 months to all members of the family if-- (1) The family received AFDC in any 3 or more months during the 6- month period immediately before the month in which it became ineligible for AFDC; and (2) At least one member of the family is employed throughout the 4- month period, although this need not be the same member for the whole period. (b) The 4 calendar month period begins on the date AFDC is terminated. If AFDC benefits are terminated retroactively, the 4 calendar month period also begins retroactively with the first month in which AFDC was erroneously paid. [43 FR 45204, Sept. 29, 1978, as amended at 45 FR 24883, Apr. 11, 1980]