(I) ARE NEEDED AND CHOSEN BY AN ELIGIBLE WAIVER
PARTICIPANT AS AN ALTERNATIVE TO INSTITUTIONALIZATION ADMISSION TO OR
CONTINUED STAY IN A NURSING FACILITY; AND

(II) ARE PART OF A PLAN OF CARE APPROVED BY THE PROGRAM;

(I) (III) ASSURE THE WAIVER PARTICIPANT'S HEALTH AND
SAFETY IN THE COMMUNITY; AND

(III) (IV) COST NO MORE PER CAPITA TO RECEIVE SERVICES IN THE
COMMUNITY THAN IN AN INSTITUTIONAL SETTING A NURSING FACILITY.

(B) ON OR BEFORE AUGUST 1, 1999, THE DEPARTMENT SHALL APPLY TO THE
HEALTH CARE FINANCING ADMINISTRATION OF THE UNITED STATES DEPARTMENT
OF HEALTH AND HUMAN SERVICES' FOR AN AMENDMENT TO THE EXISTING HOME
AND COMMUNITY BASED SERVICES WAIVER (CONTROL NUMBER 0265.90) UNDER §
1915(C) OF THE FEDERAL SOCIAL SECURITY ACT TO RECEIVE FEDERAL MATCHING
FUNDS FOR WAIVER SERVICES RECEIVED BY ELIGIBLE MEDICALLY AND
FUNCTIONALLY IMPAIRED INDIVIDUALS PARTICIPATING IN THE WAIVER

(C) THE DEPARTMENTS WAIVER APPLICATION SHALL INCLUDE THE
FOLLOWING:

(1) AN INITIAL CAP ON WAIVER PARTICIPATION AT 7,500 INDIVIDUALS,
INCLUDING NO LESS THAN 2,500 ASSISTED LIVING PROGRAM BEDS, 20% OF WHICH
SHALL BE RESERVED FOR BEDS IN NURSING HOMES THAT HAVE BEEN CONVERTED
TO ASSISTED LIVING BEDS;

(2) A LIMIT ON ANNUAL WAIVER PARTICIPATION BASED ON STATE
GENERAL FUND SUPPORT AS PROVIDED IN THE BUDGET BILL;

(2) (3) ELIMINATION OF THE CURRENT REQUIREMENTS THAT WAIVER
APPLICANTS BE AT LEAST 62 YEARS OLD AND BE ELIGIBLE FOR OR ALREADY
RECEIVE A SUBSIDY FOR THE SENIOR ASSISTED HOUSING PROGRAM;

(4) FINANCIAL ELIGIBILITY CRITERIA WHICH INCLUDE:

(I) THE CURRENT FEDERAL AND STATE MEDICAL ASSISTANCE
LONG-TERM CARE RULES FOR USING FACILITY SERVICES SERVICES PROVIDED BY A
NURSING FACILITY, PER §§ 1902, 1919, AND 1924 OF THE FEDERAL SOCIAL SECURITY
ACT, AND APPLICABLE REGULATIONS ADOPTED BY THE DEPARTMENT;

(II) MEDICALLY NEEDY INDIVIDUALS USING FACILITY SERVICES
SERVICES PROVIDED BY A NURSING FACILITY UNDER THE CURRENT FEDERAL AND
STATE MEDICAL ASSISTANCE ELIGIBILITY CRITERIA GOVERNED BY REGULATIONS
ADOPTED BY THE DEPARTMENT AND § 1919 OF THE FEDERAL SOCIAL SECURITY ACT;

(III) CATEGORICALLY NEEDY INDIVIDUALS WITH INCOME UP TO
300% OF THE APPLICABLE PAYMENT RATE FOR SUPPLEMENTAL SECURITY INCOME;
AND

(4) (5) WAIVER SERVICES THAT INCLUDE AT LEAST THE FOLLOWING: