1. Except as otherwise provided in subsection 2, the Director shall:
(a) To the extent authorized by federal law, include in the State Plan for Medicaid and in the Children’s Health Insurance Program authorization for a child less than 19 years of age who is described in 42 U.S.C. § 1396b(v)(4)(A)(ii) to enroll in Medicaid and the Children’s Health Insurance Program; and
(b) Take any action necessary to comply with the requirements of the Centers for Medicare and Medicaid Services and any other applicable federal law to carry out the requirements of paragraph (a).
2. The Director may reduce or eliminate any benefits available pursuant to subsection 1 if:
(a) The provision of such benefits is no longer authorized by federal law; or
(b) The federal medical assistance percentage calculated pursuant to 42 U.S.C. § 1396d(b) is significantly reduced below the percentage existing on July 1, 2017.