Sec. 1. 22 MRSA §254, sub-§2, as amended by PL 1983, c. 290, is repealed and the following enacted in its place:

2.__Individuals eligible for participation.__An individual is eligible under this program if the requirements of paragraphs A and B are met.

A.__The household income of the individual must meet the requirements of this paragraph.

(1)__If the household income, as defined in Title 36, section 6201, subsection 7, is less than or equal to 185% of the nonfarm income official poverty line.__The official poverty line is that applicable to a household of the size involved, as defined by the federal Office of Management and Budget and revised annually in accordance with the United States Omnibus Budget Reconciliation Act of 1981, Section 673, Subsection 2; or

(2)__If the household spends at least 25% of its income on unreimbursed direct medical expenses for prescription drugs and the household income is as follows:

(a) One hundred eighty-six percent to 200% of the nonfarm income official poverty line.__A person who qualifies under this subparagraph shall pay a co-payment of 30% for drugs provided under the program;

(b)__Two hundred one percent to 250% of the nonfarm income official poverty line.__A person who qualifies under this subparagraph shall pay a co-payment of 45% for drugs provided under the program; or

(c)__Two hundred fifty-one percent to 300% of the nonfarm income official poverty line.__A person who qualifies under this subparagraph shall pay a co-payment of 60% for drugs provided under the program.

For the purposes of this paragraph, the costs of drugs provided to a household under this chapter are considered a cost spent by the household for eligibility determination purposes.