Report it asap. Of course it is your place to do so.
I was a Medicaid intake eligibility worker in California in 2005 (called MediCal in California). It is administered by counties here, but goes by state and federal laws. So I worked for county government. Even though cases I approved were then sent to a “continuing worker” (aka carrier worker), I was required to know the county, state, and federal reporting requirements and to have my client sign a form that states those and to give them a copy as well as a list of responsibilities. Your situation falls under federal reporting laws.
The answers to any questions about reporting requirements are on the paperwork you received when applying or when approved. If you no longer have your paperwork, or have misplaced it (which is probably common), you need to call your worker and ask what to do. Your approval letter or notice you received after your case was approved should have your worker’s phone or a central number.
I can tell you right now, though, that no matter what state you reside in, an increase in salary MUST be reported as soon as it is received. This reporting requirement is based on federal law. You should call your worker and report that your husband’s income is expected to increase, the amount, and when the first paycheck with the increase is expected. The worker will follow their required procedure, which will likely to be to request proof. Then after you send a copy of his paycheck reflecting the amount with the increase to the worker, they will go from there according to the state requirements and possible county procedures. I suspect that what follows is adjustment of the household budget to find out if you are still eligible, eligible with a “share of cost”, or discontinued. (I have never been a continuing worker, so not sure.)
If you don’t report the increase in his income, you will likely be subject to a penalty for hiding it. It was stated in your paperwork. States have databases with income reports. My office had the office assistants run them once a week and send them to the workers. Because of heavy caseloads, it can take a while before workers check all of them, so covering up an increase may seem to work fine for awhile, but eventually the truth will be discovered. They only way to not get caught is to be paid “under the table”, which, of course is lying to the IRS as well and making him ineligible for unemployment insurance.
Because of the Affordable Care Act and my lack of income, I am now receiving Medicaid. So my knowledge is more current than 2005, having received my paperwork when applying.
Good luck and I hope you end up eligible for at least a share of cost. Make sure you have also reported any acceptable living expenses that can help balance out your case (rent increase, ulitity increase, for example).
