(1) Provisional CHIP benefits may be extended to enrollees who would otherwise lose health care coverage while awaiting a medicaid determination. Provisional coverage may be extended to enrollees who:

(a) submit a completed CHIP renewal application before their CHIP benefits are scheduled to end;

(b) have been determined potentially eligible for medicaid coverage; and

(c) are awaiting a medicaid eligibility determination.

(2) A determination of CHIP eligibility will be completed within 20 working days after receipt of a complete application.

(3) Applications for applicants who appear to be medicaid eligible will be forwarded to the appropriate county office of public assistance for a medicaid eligibility determination within 20 working days after receipt of a complete application.

(a) Applicants who are denied medicaid coverage for failure to comply with medicaid eligibility requirements:

(i) are not eligible for CHIP benefits; and

(ii) will not have their application referred to other health care resources.

(b) CHIP applications will be processed for those applicants who subsequently provide information which would preclude them from medicaid eligibility.