For the purposes of this section, director means the director of human services. Notwithstanding any inconsistent provision of law, but subject to the expenditure limitations of this chapter, the director, subject to the approval of the state director of the budget, may authorize the utilization of medical assistance funds to pay for assisted living supportive services provided by specified assisted living facilities in addition to those services included in the medical assistance program under title 40 of this code, so long as federal financial participation is available for those services. Expenditures made under this subdivision shall be deemed payments for medical assistance for needy persons.

(1)  The department shall not make payments pursuant to Title XIX of the federal Social Security Act, 42 U.S.C. § 1396 et seq., for benefits available under Title XVIII of that act, 42 U.S.C. § 1395 et seq., without documentation that Title XVIII claims have been filed and denied.

(2)  The department shall not make payments for a person receiving assisted living services while payments are being made for that person under another Medicaid waiver program or for inpatient care in a skilled nursing and intermediate care facility or hospital; provided, however, this shall not affect monthly payments made under prospective reimbursement contracts.