To the extent authorized by federal law or regulation, if a Program recipient who is at least 21 years old but is under the age of 65 years is incarcerated or is admitted to an institution for the treatment of mental disease, the Department:

(1) Shall suspend Program benefits for that individual while the individual is incarcerated or is in the institution; and

(2) May not terminate Program benefits for that individual based on the incarceration of the individual or on the admission of the individual to the institution.