Basis, scope, and applicability.

(a) Statutory basis. This subpart interprets and implements— (1) Section 2105(c)(2)(B) of the Act, which sets forth the requirements to permit a State to exceed the 10 percent cost limit on expenditures other than benefit expenditures; and (2) Section 2105(c)(3) of the Act, which permits the purchase of family coverage. (b) Scope. This subpart sets forth requirements for obtaining a waiver under title XXI. (c) Applicability. This subpart applies to separate child health programs; and applies to Medicaid expansion programs when the State claims administrative costs under title XXI and seeks a waiver of limitations on such claims for use of a community-based health delivery system. This subpart does not apply to demonstrations requested under section 1115 of the Act. [66 FR 2686, Jan. 11, 2001, as amended at 66 FR 33824, June 25, 2001]