(1) Except as provided in subsection (2) of this section, pregnant women, new mothers up to twelve (12) months postpartum, and children up to age one (1) shall be eligible for participation in the Kentucky Medical Assistance Program if:
(a) They have family income up to but not exceeding one hundred and eighty-five percent (185%) of the nonfarm income official poverty guidelines as promulgated by the Department of Health and Human Services of the United States as revised annually; and (b) They are otherwise eligible for the program.
(2) The percentage established in subsection (1)(a) of this section may be increased to the extent:
(a) Permitted under federal law; and (b) Funding is available.