(1) All or part of the charges for the medical care and treatment of a child or youth with special health care needs must be paid to the department of treasury by the child, parent, or spouse, if that individual has the ability to pay. The payment must be in the amount and at a rate determined by agreement between the individual and the department. Upon treatment of the child or youth with special health care needs, the department shall furnish the department of treasury information required to keep a correct account of the money due this state from the child, parent, or spouse. The department of treasury shall credit the parent participation payments to the parent participation fund.

  (2) The department may modify or cancel an agreement made under this section based on economic or other factors and shall report that action to the department of treasury.

  (3) The department of treasury may accept and issue a receipt for an amount due under an agreement or modification to an agreement under this section.