Medically Needy Only is the term used to describe those cases in which the custodial party and/or children are only receiving Medi­Cal benefits and not CalWORKS cash aid payments. These cases are referred to the FSD or local child support agency for the purpose of establishing paternity and obtaining medical support for the dependent children. The custodial party must cooperate with the FSD or local child support agency as a condition of eligibility for Medi­Cal, unless he/she has filed a claim of good cause for not cooperating which the county Welfare Department has approved.

The custodial party must tell the FSD or local child support agency about any other health coverage that they or their children are entitled to, or that they currently have. By law, any right to medical support or payments for medical care from other health coverage that a Medi­Cal recipient may have is automatically assigned to the state. The FSD or local child support agency will also seek to establish and enforce a child support order for the dependent children, unless the custodial party tells the FSD or local child support agency that he/she does not want this service.