| D.__Income eligibility of individuals must be determined by |
| this paragraph and by reference to the federal poverty |
| guidelines for the 48 contiguous states and the District of |
| Columbia, as defined by the federal Office of Management and |
| Budget and revised annually in accordance with the United |
| States Omnibus Budget Reconciliation Act of 1981, Section |
| 673, Subsection 2, Public Law 97-35, reauthorized by Public |
| Law 105-285, Section 201 (1998).__If the household income is |
| not more than 185% of the federal poverty guideline |
| applicable to the household, the individual is eligible for |
| the basic program and the supplemental program.__Individuals |
| are also eligible for the basic 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 paragraph.__For |
| the purposes of this paragraph, the cost of drugs provided |
| to a household under this section is considered a cost |
| incurred by the household for eligibility determination |
| purposes. |