Persons who would be ineligible for AFDC-related Medicaid using the rules in existence as of July 16, 1996 or due to the imposition of a sanction of ineligibility for a TANF eligibility factor that does not apply to NJ FamilyCare (such as noncooperation with work registration) shall have eligibility determined under this chapter without regard to the sanction. Persons other than children and pregnant women sanctioned for non-cooperation of medical support under provisions of 10:69-10.28 shall be subject to the same sanction under NJ FamilyCare (for persons ineligible for AFDC-related Medicaid due to a period of ineligibility imposed as a result of the receipt of lump sum income, see 10:78-4.3(c) ) .
N.J. Admin. Code § 10:78-3.7