(a) The Department shall investigate development of integrated care systems and the feasibility and desirability of applying for a home- and community-based services waiver in order to maximize federal matching funds for the provision of services to adults who:

(1) Have functional disabilities, including Alzheimer’s disease and related disorders;

(2) Have family income not greater than 200% of the federal poverty level; and

(3) Would otherwise require nursing home institutionalization.

(b) The services covered under the waiver under this section may include:

(1) Routine and emergency respite care;

(2) Adult day care;

(3) Personal care;

(4) Case management; and

(5) Homemaker services.

(c) The Department may place a reasonable limit on the number of individuals or on the geographic area of the State included in the waiver under this section.