WILLIAM DONALD SCHAEFER, Governor                   Ch. 323

(i) Assets are not more than 1.5 TIMES HIGHER
THAN THE AMOUNT OF ACCOUNTABLE RESOURCES ACCORDING TO the asset
schedule of the Maryland Medical Assistance Program; and

(ii) Gross annual income does not exceed:

1.  $4,600 plus $500 for each individual
over one 1 in a family unit; and

2.  An annual increase set by the
Secretary under paragraph (2)(iii) of this subsection.

(2) For the purpose of paragraph (1) of this
subsection, the Secretary shall:

(i) Define excluded assets;

(ii) Establish a family unit structure; and

(iii) Beginning July 1, 1985, increase annually
at the time social security benefits are increased OR AT THE
TIME THE STATE INCREASES THE MEDICAL ASSISTANCE INCOME SCHEDULES,
rounded to the next highest even $50 level, the income level
within which an individual is eligible for benefits under the
Maryland Pharmacy Assistance Program by the larger of:

1.  The percentage by which benefits under
Title II of the Social Security Act (42 USC 401-433) are
increased by the federal government due to cost-of-living
changes as that percentage is reported in the Federal Register
pursuant to 42 USC 415 (i)(2)(d) but not to exceed 8 percent; or

2.  The dollar amount by which the medical
assistance income schedules are increased by the State.

(b) (1) The Maryland Pharmacy Assistance Program shall
reimburse providers for those kinds of items and services that
are covered by the pharmacy program of the Maryland Medical
Assistance Program.

(2) The reimbursement shall be up to the amount paid
for the same items or services under the pharmacy program of the
Maryland Medical Assistance Program and subject to a copayment of
not more than $1 for each covered item or service.

(c) (1) The Secretary shall adopt rules and regulations
that authorize the denial, restriction, or termination of a
eligibility for recipients who have abused benefits under the
Maryland Pharmacy Assistance Program.

(2) The rules and regulations shall require that the
recipient be given notice and an opportunity for a hearing before

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