; and (B) provide such individual with notice of such procedures. (b) Medicaid and CHIP (1) State options (A) In general In a State for which the Secretary of Health and Human Services is determining eligibility for individuals who apply for insurance affordability programs at the Exchange serving residents of the individual’s State, the Secretary of Health and Human Services shall present the State with not less than 3 sets of options for verification procedures and business rules that the Exchange serving residents of such State shall use in determining eligibility for the State Medicaid program and CHIP program with respect to individuals who are household members described in section 3(b)(1)(B). Notwithstanding any other provision of law, the Secretary of Health and Human Services may present each State with the same 3 sets of options, provided that each set can be customized to reflect each State’s decisions about optional eligibility categories and criteria for the Medicaid program and CHIP program. (B) Business rules The business rules described in subparagraph (A) shall specify detailed eligibility determination rules and procedures for processing initial applications and renewals, including— (i) the Secretary’s use of data from State agencies and other sources described in subsection (c)(3)(A)(ii) of section 1413 of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18083 )