Sec. A-7. 22 MRSA §3174-V, sub-§2, as amended by PL 2003, c. 20, Part K, §11, is further amended to read:

2. Contracted services. When a federally qualified health center otherwise meeting the requirements of subsection 1 contracts with a managed care plan or Dirigo Health Insurance for the provision of Medicaid MaineCare services, the department shall reimburse that center the difference between the payment received by the center from the managed care plan or Dirigo Health Insurance and 100% of the reasonable cost, reduced by the total copayments for which members are responsible, incurred in providing services within the scope of service approved by the federal Health Resources and Services Administration or the commissioner. Any such managed care contract must provide payments for the services of a center that are not less than the level and amount of payment that the managed care plan or Dirigo Health Insurance would make for services provided by an entity not defined as a federally qualified health center.

Sec. A-8. 24-A MRSA c. 87 is enacted to read:

CHAPTER 87

DIRIGO HEALTH

SUBCHAPTER 1

GENERAL PROVISIONS

§6901.__Short title

This chapter may be known and cited as "the Dirigo Health Act."

§6902.__Dirigo Health established; declaration of necessity

Dirigo Health is established as an independent executive agency to arrange for the provision of comprehensive, affordable health care coverage to eligible small employers, including the self-employed, their employees and dependents, and individuals on a voluntary basis.__Dirigo Health is also responsible for monitoring and improving the quality of health care in this State.__ The exercise by Dirigo Health of the powers conferred by