(b) To be eligible for enrollment in the program, an applicant shall have been rejected for health care coverage by at least one private health plan. An applicant shall be deemed to have been rejected if the only private health coverage that the applicant could secure would do one of the following:

1. (1) Impose substantial waivers that the department determines would leave a subscriber without adequate coverage for medically necessary services.
2. (2) Afford limited coverage that the department determines would leave the subscriber without adequate coverage for medically necessary services.
3. (3) Afford coverage only at an excessive price, which the department determines is significantly above standard average individual coverage rates.