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(1) the Department of Health offers a choice of coverage as part of a Medicaid waiver under Title 26, Chapter 18, Medical Assistance Act, which includes:
(a) less or different coverage than the basic coverage;
(b) less or different coverage than is otherwise required in an insurance policy or health maintenance organization contract under applicable state law; or
(c) less or different coverage than required by Subsection 31A-22-605(4)(b); and
(2) the choice of coverage offered by the carrier:
(a) is the same or similar coverage as the coverage offered by the Department of Health under Subsection (1);
(b) is offered to the same or similar population as the coverage offered by the Department of Health under Subsection (1); and
(c) contains an explanation for each insured of coverage exclusions and limitations.