In administering the assignment of rights provision, the agency must:
(a) Deny or terminate eligibility for any applicant or beneficiary who--
(1) Refuses to assign his own rights or those of any other individual for whom he can legally make an assignment; or
(2) Refuses to cooperate as required under Sec. 433.147(a) unless cooperation has been waived;
(b) Provide Medicaid to any individual who--
(1) Cannot legally assign his own rights; and
(2) Would otherwise be eligible for Medicaid but for the refusal, by a person legally able to assign his rights, to assign his rights or to cooperate as required by this subpart; and
(c) In denying or terminating eligibility, comply with the notice and hearing requirements of part 431, subpart E of this subchapter.
Cooperative Agreements and Incentive Payments