SECTION 1. Section 25 of chapter 118E of the General Laws, as appearing in the 2012 Official Edition, is hereby amended in subsection (5) by striking out the second paragraph and inserting in place thereof the following paragraph:-

In any case where the monthly income of an applicant or recipient is in excess of the exemptions allowed, the applicant or recipient, if otherwise eligible for Medicaid under this chapter, shall be liable to pay to the provider of medical care or service an amount which shall be equal to the excess income for a period of six consecutive months, which includes the period when such service was provided; provided, however that in such cases where the individual’s gross income is greater than 300% of the federal Supplemental Security Income level but less than the average monthly cost of nursing home care as calculated by the division and the individual is participating in a Home and Community Based Waiver, under 42 USC 1396a(10)(a)(ii)(VI) or a PACE Program, under 42 USC 1396u-4 or 42 USC 1395eee, the division shall charge a premium, equal to the difference between the individual’s gross income and 300% of the federal Supplemental Security Income level, on a monthly basis. The division shall apply for any federal waivers necessary to implement this provision.