Directs the Department of Health and Human Services, Division of Medical Assistance (DMA), to adopt and implement a policy to prevent a Medicaid recipient from losing Medicaid eligibility when the annual Social Security and Railroad Retirement Cost of Living Adjustments (COLAs) and the annual federal poverty level adjustment cause a recipient to become income-ineligible for Medicaid benefits. Applies only to cases where Medicaid income eligibility is affected only by Social Security and Railroad Retirement COLAs and federal poverty level adjustment, and will not make a Medicaid recipient eligible if other eligibility requirements are not met. Directs DMA to apply to the Centers for Medicare and Medicaid Services for policy approval, if required.