(b) Maximum Allowable Cost Sharing.

1. (1) At State option, cost sharing imposed for any service (other than for drugs and non-emergency services furnished in an emergency department, as described in §§ 447.53 and 447.54 respectively) may be established at or below the amounts shown in the following table (except that the maximum allowable cost sharing for individuals with family income at or below 100 percent of the FPL shall be increased each year, beginning October 1, 2015, by the percentage increase in the medical care component of the CPI-U for the period of September to September of the preceding calendar year, rounded to the next higher 5-cent increment):

   Services	Maximum allowable cost sharing
   Individuals with family income≤100% of the FPL	Individuals with family income101-150% of the FPL	Individuals with family income>150% of the FPL
   Outpatient Services (physician visit, physical therapy, etc.)	$4	10% of cost the agency pays	20% of cost the agency pays.
   Inpatient Stay	75	10% of total cost the agency pays for the entire stay	20% of total cost the agency pays for the entire stay.

2. (2) States with cost sharing for an inpatient stay that exceeds $75, as of July 15, 2013, must submit a plan to CMS that provides for reducing inpatient cost sharing to $75 on or before July 1, 2017.
3. (3) In states that do not have fee-for-service payment rates, any cost sharing imposed on individuals at any income level may not exceed the maximum amount established, for individuals with income at or below 100 percent of the FPL described in paragraph (b)(1) of this section.

(d) Targeted cost sharing.

1. (1) Except as provided in paragraph (d)(2) of this section, the agency may target cost sharing to specified groups of individuals with family income above 100 percent of the FPL.
2. (2) For cost sharing imposed for non-preferred drugs under § 447.53 and for non-emergency services provided in a hospital emergency department under § 447.54, the agency may target cost sharing to specified groups of individuals regardless of income.

(e) Denial of service for nonpayment.

1. (1) The agency may permit a provider, including a pharmacy or hospital, to require an individual to pay cost sharing as a condition for receiving the item or service if—

   1. (i) The individual has family income above 100 percent of the FPL,
   2. (ii) The individual is not part of an exempted group under § 447.56(a), and
   3. (iii) For cost sharing imposed for non-emergency services furnished in an emergency department, the conditions under § 447.54(d) of this part have been satisfied.
2. (2) Except as provided under paragraph (e)(1) of this section, the state plan must specify that no provider may deny services to an eligible individual on account of the individual's inability to pay the cost sharing.
3. (3) Nothing in this section shall be construed as prohibiting a provider from choosing to reduce or waive such cost sharing on a case-by-case basis.

(i) State Plan Specifications. For each cost sharing charge imposed under this part, the state plan must specify—

1. (1) The service for which the charge is made;
2. (2) The group or groups of individuals that may be subject to the charge;
3. (3) The amount of the charge;

4. (4) The process used by the state to—

   1. (i) Ensure individuals exempt from cost sharing are not charged,
   2. (ii) Identify for providers whether cost sharing for a specific item or service may be imposed on an individual and whether the provider may require the individual, as a condition for receiving the item or service, to pay the cost sharing charge; and
5. (5) If the agency imposes cost sharing under § 447.54, the process by which hospital emergency room services are identified as non-emergency service.