SECTION 1. Section 25 of chapter 118E of the General Laws is hereby amended by striking out subsection (1) in its entirety and replacing it with the following new subsection:-

(1) Monthly income in an amount not exceeding the level equivalent of 138% of the federal poverty level, as updated annually;

SECTION 2. Section 25 of chapter 118E of the General Laws is hereby amended by inserting after subsection (5) the following:

(6) the cash surrender value of any life insurance owned by the applicant or member or his or her spouse without regard to the face value of the policy or policies;

(7) resources in the amount of $10,000 per individual and $20,000 per couple.

The division shall submit a state plan amendment to implement this section no later than 30 days after the effective date of this section and subsequently promulgate all regulations necessary to implement said income and resource exemptions.