(1) “Medical assistance for the aged” means payment of part or all of the cost of the following care and services provided for persons sixty-five (65) years of age or older who are not recipients of old age assistance but whose income and resources are insufficient to meet all of such cost:

(a) Inpatient hospital services;

(b) Skilled nursing-home services;

(c) Physicians’ services;

(d) Outpatient hospital or clinic services;

(e) Home health care services;

(f) Private duty nursing service;

(g) Physical therapy and related services;

(h) Dental and optometric services;

(i) Laboratory and X-ray services;

(j) Prescribed drugs, eyeglasses, dentures, and prosthetic devices;

(k) Diagnostic, screening, and preventive services; and

(l) Any other medical care or remedial care recognized under state law.

(2) The definitions of the care and services listed above shall be in keeping with Title I or Title XVI of the federal Social Security Act as amended, the rules and regulations promulgated by the secretary of health, education, and welfare, and the state licensing laws governing such care and services when licensing is required.

(3) “Administering agency” means the state department of public welfare, the state board of public welfare of which shall have the duty of making and publishing rules and regulations, not inconsistent with the terms of this article, as may be necessary for its efficient administration.

(4) “A vendor payment” is a payment made directly to a supplier or provider of medical and remedial care or service on behalf of an eligible recipient of medical assistance to the aged.