A State must deem an applicable individual to have demonstrated community engagement under § 435.552 for a month if—

(a) For part or all of that month, the individual was:

(1) Under the age of 19 years;

(2) Entitled to or enrolled for Medicare benefits under part A or enrolled for benefits under part B of title XVIII of the Act;

(3) Described in any mandatory coverage groups in subclauses (I) through (VII) of section 1902(a)(10)(A)(i) of the Act under the Medicaid State plan; or,

(4) A specified excluded individual as defined at § 435.554.

(b) At any point during the 3-month period ending on the first day of that month, the individual was an inmate of a public institution.