| 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; |