(a) HHSC determines income eligibility for CHIP by:(1) determining the applicant's or recipient's household composition in accordance with §370.807 of this subchapter (relating to Determination of Household Composition);(2) calculating the individual income of each person in the applicant's or recipient's household composition in accordance with §370.809 of this subchapter (relating to Calculation of Individual Income);(3) determining if the individual income of each individual in the applicant's or recipient's household composition is included in the calculation of household income in accordance with §370.811 of this subchapter (relating to Determination Regarding Including an Individual's Income in the Household Income); and(4) calculating the applicant's or recipient's household income in accordance with §370.813 of this subchapter (relating to Calculation of Household Income).(b) To be eligible for CHIP, the applicant's or recipient's household income must be less than or equal to 200% of the Federal Poverty Level (FPL) for a family of the size involved.