110 STAT. 2178 PUBLIC LAW 104-193—AUG. 22, 1996 "(i) the income and resource standards for determining eligibility under such plan, and "(ii) the eligibility requirements of such plan under subsections (a) through (c) of section 406 and section 407(a), as in effect as of July 16, 1996; and "(B) the income and resource methodologies under such plan as of such date shall be used in the determination of whether any individual meets income and resource standards under such plan. "(2) STATE OPTION.— For purposes of applying this section, a State— "(A) may lower its income standards applicable with respect to part A of title IV, but not below the income standards applicable under its State plan under such part on May 1, 1988; "(B) may increase income or resource standards under the State plan referred to in paragraph (1) over a period (beginning after July 16, 1996) by a percentage that does not exceed the percentage increase in the Consumer Price Index for all urban consumers (all items; United States city average) over such period; and "(C) may use income and resource methodologies that are less restaictive than the methodologies used under the State plan under such part as of July 16, 1996. "(3) OPTION TO TERMINATE MEDICAL ASSISTANCE FOR FAILURE TO MEET WORK REQUIREMENT.— " (A) INDIVIDUALS RECEIVING CASH ASSISTANCE UNDER TANF.— In the case of an individual who— "(i) is receiving cash assistsince under a State program funded xmder part A of title IV, "(ii) is eligible for medical assistance under this title on a basis not related to section 1902(1), and "(iii) has the cash assistance under such program terminated pursuant to section 407(e)(1)(B) (as in effect on or after the welfare reform effective date) because of refusing to work, the State may terminate such individual's eligibility for medical assistance under this title until such time as there no longer is a basis for the termination of such cash assistance because of such refusal. "(B) EXCEPTION FOR CHILDREN. —Subparagraph (A) shall not be construed as permitting a State to terminate medical assistance for a minor child who is not the head of a household receiving assistance under a State program funded under part A of title IV. " (c) TREATMENT FOR PURPOSES OF TRANSITIONAL COVERAGE PROVISIONS.— "(1) TRANSITION IN THE CASE OF CHILD SUPPORT COLLEC- TIONS. —The provisions of section 406(h) (as in effect on July 16, 1996) shall apply, in relation to this title, with respect to individuals (and families composed of individuals) who are described in subsection (b)(1)(A), in the same manner as they applied before such date with respect to individuals who became ineligible for aid to families with dependent children as a result (wholly or partly) of the collection of child or spousal support under part D of title IV.
�
