The agency must provide Medicaid to individuals who were eligible for Medicaid in December 1973, or any part of that month, as inpatients of medical institutions or residents of intermediate care facilities that were participating in the Medicaid program and who—

1. (a) For each consecutive month after December 1973—

   1. (1) Continue to meet the requirements for Medicaid eligibility that were in effect under the State's plan in December 1973 for institutionalized individuals; and
   2. (2) Remain institutionalized; and
2. (b) Are determined by the State or a professional standards review organization to continue to need institutional care.