Sec. 1. 22 MRSA §254, sub-§2, as amended by PL 1999, c. 401, Pt. KKK, §1 and affected by §10 and c. 531, Pt. F, §2, is further amended to read:

2. Income eligibility. Income eligibility of individuals must be determined by this subsection and by reference to the federal nonfarm income official poverty level, as defined by the federal Office of Management and Budget and revised annually in accordance with the United States Omnibus Budget and Reconciliation Act of 1981, Section 673, Subsection 2. If the household income, as defined in subsection 9, is less than 185% 225% of the federal poverty line applicable to the household, the individual is eligible for the basic and the supplemental program. Individuals are also eligible for the basic program and the supplemental program if the household spends at least 40% 30% of its income on unreimbursed direct medical expenses for prescription drugs and medications and the household income is not more than 25% higher than the levels specified in this subsection. For the purposes of this subsection, the cost of drugs provided to a household under this section is considered a cost incurred by the household for eligibility determination purposes;

SUMMARY

This bill increases eligibility for the elderly low-cost drug program by increasing the income level from 185% to 225% of the nonfarm income official poverty level. This will increase the monetary level, in 2000 figures, from $20,820 to $25,326 for a family of 2 persons. This bill also increases eligibility by decreasing from 40% of income to 30% of income the amount of high medical expenses that increases the income eligibility level by 25%.