(a) An applicant or recipient who is a child must live in a home with a caretaker who is present in the home and supervises and cares for the applicant or recipient. A home is a family setting maintained or being established, as evidenced by continuation of responsibility for day-to-day care of the applicant or recipient.(b) A caretaker must be the applicant's or recipient's:(1) father or mother;(2) grandparent, to the degree of a "great, great, great" grandparent;(3) brother or sister;(4) uncle or aunt, to the degree of a "great, great" uncle or aunt;(5) first cousin;(6) nephew or niece, to the to the degree of a "great, great" nephew or niece;(7) stepfather or stepmother;(8) stepbrother or stepsister; or(9) first cousin once removed.(c) An independent child may live alone or with a person who is not a parent or relative. An independent child is a child who does not live with a parent and who:(1) is able to apply for Medicaid on his or her own behalf; or(2) is eligible for Medicaid because a responsible person who is not within the degree of relationship required for eligibility in subsection (b) of this section applies on the child's behalf.