(b) Residency requirement.

1. (1)

   1. (A) The child and his or her family must be current residents of Arkansas at the time services are provided.
   2. (B) Proof of residency will be required.
2. (2) If the child is not a naturalized citizen, e.g., the parent has a work visa, the family must provide proof the child has been in the United States for twelve (12) consecutive months and has current residency in Arkansas.

3. (3) The individual applying for services on behalf of the child must:

   1. (A) Be the parent or guardian of the child; and
   2. (B) Be a current resident of the State of Arkansas.

(c) Medical eligibility.

1. (1) A child diagnosed with a condition that causes chronic illness or disability may be eligible for CHC services when the illness or disability results in the need for periodic pediatric specialty treatment and follow-up.
2. (2) The family must provide medical documentation of the illness or disability and the continued need for periodic treatment and follow-up by a specialty physician.

(e) Financial eligibility.

1. (1)

   1. (A) The family’s annual household gross income cannot exceed three hundred fifty percent (350%) of the federal poverty level.
   2. (B) The household includes:

(i) The parents;

1. (ii) The step-parents;

   1. (iii) The child; and

      1. (iv) All siblings, half-siblings, and step-siblings.
   2. (C) The household does not include any siblings over eighteen (18) years of age, a significant other, or the significant other’s child or children, and other relatives.

2. (2) Income.

   1. (A) Income includes regular salary (including military income and income from self-employment) and overtime, as well as:

      1. (i) Cost of employer-furnished housing or utilities;
      2. (ii) Per diem for travel to and from work;
      3. (iii) Bonuses;
      4. (iv) Tips;
      5. (v) Educational stipends, grants, scholarships, and fellowships to the extent they cover living expenses;
      6. (vi) Unemployment benefits;
      7. (vii) Stock and bond dividends;
      8. (viii) Charitable contributions;
      9. (ix) Social Security benefits;
      10. (x) Adoption subsidy; and
      11. (xi) Royalties.

   2. (B) Income does not include:

      1. (i) Income from those not counted in the household;
      2. (ii) Income from the siblings, half-siblings, and step-siblings;
      3. (iii) Grants, scholarships, and fellowships to the extent they cover educational expenses (tuition, books, etc.);
      4. (iv) Foster Care Board payments; and
      5. (v) Income from the child, unless emancipated.
   3. (C) If parents have joint custody, income is determined based on the parent who has primary physical custody of the child.

   4. (D) Failure to truthfully disclose the following may result in denial of the CHC application:

      1. (i) All sources of income;
      2. (ii) Pending litigation; and
      3. (iii) Other sources of payment, such as awards and settlements for medically necessary services.