(a) The commission shall provide transitional medical assistance, in accordance with state rules and federal law, to a person who was receiving financial assistance under Chapter 31 but is no longer eligible to receive the assistance because:
(1) the person's household income has increased; or
(2) the person has exhausted the person's benefits under Section 31.0065.
(b) Except as provided by Section 31.012(c), the commission may provide the medical assistance only until the earlier of:
(1) the end of the applicable period prescribed by Section 31.0065 for the provision of transitional benefits; or
(2) the first anniversary of the date on which the person becomes ineligible for financial assistance because of increased household income.