436.116—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 45218, Sept. 29, 1978, as amended at 45 FR 24887, Apr. 11, 1980]