|  | 2.  Income eligibility.  Income eligibility of individuals | 
| must be determined by this subsection and by reference to the | 
| federal nonfarm income official poverty level, as defined by the | 
| federal Office of Management and Budget and revised annually in | 
| accordance with the United States Omnibus Budget and | 
| Reconciliation Act of 1981, Section 673, Subsection 2.  If the | 
| household income, as defined in subsection 9, is less than 185% | 
| 189% of the federal poverty line applicable to the household, the | 
| individual is eligible for the basic and the supplemental | 
| program.  Individuals are also eligible for the basic program and | 
| the supplemental program if the household spends at least 40% of | 
| its income on unreimbursed direct medical expenses for | 
| prescription drugs and medications and the household income is | 
| not more than 25% higher than the levels specified in this | 
| subsection.  For the purposes of this subsection, the cost of | 
| drugs provided to a household under this section is considered a | 
| cost incurred by the household for eligibility determination | 
| purposes; |