(a) A recipient, certified as required by §1931 of the Social Security Act (42 U.S.C. §1396u-1) and §32.0255 of the Texas Human Resources Code, who is denied because of new or increased earnings may be eligible for 12-month transitional Medicaid, as provided by §1925 of the Social Security Act (42 U.S.C. §1396r-6).(b) To remain eligible for 12-month transitional Medicaid, a recipient must report changes in the fourth, seventh, and tenth months.(c) A recipient who reports changes is denied only for one or more of the following reasons:(1) no eligible child is in the home;(2) on the seventh- or tenth-month report, the caretaker relative had no earnings in one of the previous three months; or(3) the average monthly income exceeds 185% of the Federal Poverty Level on the seventh- or tenth-month report.