Sec. 4. (a) An individual who:
(1) is receiving residential care assistance under section 1 or 2.1 of this chapter; and
(2) has an increase in income that would make the individual ineligible for residential care assistance;
may elect to continue to be eligible for residential care assistance by paying the excess income to the home or facility that provides residential care.
(b) If an individual applies the excess income toward the residential care assistance under subsection (a), the division shall reduce the payment to the home or facility that provides residential care by the amount received by the home or facility.