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42 U.S. Code § 1396u-3. State coverage of medicare cost-sharing for additional low-income medicare beneficiaries
(a) In general
A State plan under this subchapter shall provide, under section 1396a(a)(10)(E)(iv) of this title and subject to the succeeding provisions of this section and through a plan amendment, for medical assistance for payment of the cost of medicare cost-sharing described in such section on behalf of all individuals described in such section (in this section referred to as “qualifying individuals”) who are selected to receive such assistance under subsection (b).
(b) Selection of qualifying individualsA State shall select qualifying individuals, and provide such individuals with assistance, under this section consistent with the following:
(1) All qualifying individuals may apply
The State shall permit all qualifying individuals to apply for assistance during a calendar year.
(2) Selection on first-come, first-served basis
(A) In general
For each calendar year (beginning with 1998), from (and to the extent of) the amount of the allocation under subsection (c) for the State for the fiscal year ending in such calendar year, the State shall select qualifying individuals who apply for the assistance in the order in which they apply.
(B) Carryover
For calendar years after 1998, the State shall give preference to individuals who were provided such assistance (or other assistance described in section 1396a(a)(10)(E) of this title) in the last month of the previous year and who continue to be (or become) qualifying individuals.
(3) Limit on number of individuals based on allocation
The State shall limit the number of qualifying individuals selected with respect to assistance in a calendar year so that the aggregate amount of such assistance provided to such individuals in such year is estimated to be equal to (but not exceed) the State’s allocation under subsection (c) for the fiscal year ending in such calendar year.