Medicaid Working Poor Family Amendments of 1988

Medicaid Working Poor Family Amendments of 1988 - Amends title XIX (Medicaid) of the Social Security Act to require a State to continue a family's Medicaid eligibility for: (1) six months after the family loses eligibility under part A (Aid to Families with Dependent Children)(AFDC) of title IV of the Act because of increased earnings if the family has received AFDC payments for three of the preceding six months; and (2) for an optional 18 additional months if the family has received the entire six months of extended Medicaid coverage. Terminates extended Medicaid coverage if the family ceases to include a dependent child.

Authorizes States to provide the extended Medicaid coverage by paying a family's: (1) expenses for health insurance offered by the caretaker relative's or absent parent's employer; or (2) premium and enrollment costs, during the 18-month extension period, for coverage under a group health plan offered to the caretaker relative, a group health plan offered by the State to its employees, or a health maintenance organization. Requires States offering such alternative coverage to pay, in addition to the premium and enrollment costs for such coverage, any other cost sharing amounts for pregnancy services and ambulatory preventive pediatric care for children born on or after September 30, 1985. Terminates the 18-month extension period if a family's earnings exceed 185 percent of the Federal poverty level or the caretaker relative has no earnings for a month due to his or her voluntary loss of employment without good cause. Authorizes States to impose a premium on families receiving the 18 months of extended coverage, but prohibits its exceeding ten percent of the amount by which a family's earnings exceed minimum monthly wage earnings.

Requires States to extend Medicaid coverage for six months to families who lose family support supplement eligibility as the result of the collection or increased collection of child or spousal support under part D (Child Support and Establishment of Paternity) of title IV of the Act if the family has received supplement payments for three of the preceding six months.