Sec. 1. 22 MRSA §3174-G, sub-§1, ¶¶D and E, as enacted by PL 1999, c. 731, Pt. OO, §1, are amended to read:

D. A child one year of age or older and under 19 years of age when the child's family income is equal to or below 150% of the nonfarm income official poverty line; and

E. The parent or caretaker relative of a child described in paragraph B or D when the child's family income is equal to or below 150% of the nonfarm income official poverty line, subject to adjustment by the commissioner under this paragraph. Medicaid services provided under this paragraph must be provided within the limits of the program budget. Funds appropriated for services under this paragraph must include an annual inflationary adjustment equivalent to the rate of inflation in the Medicaid program. On a quarterly basis, the commissioner shall determine the fiscal status of program expenditures under this paragraph. If the commissioner determines that expenditures will exceed the funds available to provide Medicaid coverage pursuant to this paragraph, the commissioner must adjust the income eligibility limit for new applicants to the extent necessary to operate the program within the program budget. If, after an adjustment has occurred pursuant to this paragraph, expenditures fall below the program budget, the commissioner must raise the income eligibility limit to the extent necessary to provide services to as many eligible persons as possible within the fiscal constraints of the program budget, as long as the income limit does not exceed 150% of the nonfarm income official poverty line.; and

Sec. 2. 22 MRSA §3174-G, sub-§1, ¶F is enacted to read:

F.__A person over 18 years of age and under 65 years of age who is not otherwise covered under paragraphs A to E when the person's__family income is equal to or below 150% of the nonfarm income official poverty line. By October 1, 2001 the department shall take all necessary and reasonable steps to obtain federal approval to provide coverage for persons described in this paragraph. Medicaid services under this paragraph must be provided beginning 30 days after the date of federal approval. Pending federal approval, the department shall provide medical assistance to persons described in this paragraph to the same extent as persons who receive Medicaid, provided that the department may establish an income eligibility standard for those persons at a level that will provide medical assistance to low- income persons to the extent that funds appropriated for this purpose permit.