(a) The standards established for the expenditure of state funds under this act shall be in accordance with the requirements of this section.

(b) The secretary shall devise a formula for determining the patients' financial ability to pay costs of treatment, hereinafter designated PFA. He shall consider (i) the aggregate taxable incomes subject to federal tax on individual incomes of all persons responsible for support of the patient and (ii) the available capital assets, both tangible and intangible, of the patient including any in which he possesses a vested beneficial interest, including but not limited to, insurance, trusts, estates, bank accounts, stocks, evidences of indebtedness and real property. The secretary is authorized to require such proof of the financial status of each patient as he may reasonably deem necessary in the circumstances before he shall approve an application for a grant of state funds.

(c) The department may provide funds in the amounts indicated in subsection (d) for persons whose income, or, the income of the person responsible for his support, is less than the standard budget allowance determined as follows:

(2) For each additional person in a family of more than six persons, one thousand dollars ($1,000) shall be added to the standard budget allowance for each additional member.

(3) The number of persons in the family are those dependent on the standard budget allowance for support.

(d) The department may pay on behalf of a patient eligible for assistance under subsection (c) an amount equal to the excess of the actual cost of treatment over the amount required to be paid by the patient as determined by the excess of his financial ability over his standard budget allowance as follows:

For each one thousand dollars ($1000) by which the financial ability of the patient exceeds three thousand six hundred dollars ($3600), the annual patient share of cost shall be increased one hundred dollars ($100).

(e) All equipment shall be purchased or leased by the commonwealth and leased or subleased to the patient who shall pay a fee listed in subsection (d) as the patient share of cost.

(f) Counseling and guidance services shall be provided without regard to income or resources.

(g) The patient's annual share of the cost shall, if the patient so elects, be paid in twelve substantially equal monthly payments or may be paid as the patient and secretary may agree.