Sec. 1. 22 MRSA §3174-G, sub-§1, ¶D, as amended by PL 2003, c. 673, Pt. Y, §2, is further 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, except that the department may adopt a rule that provides that children described in this paragraph in families with income over 150% and equal to or below 200% of the nonfarm income official poverty line who meet the eligibility requirements of the Cub Care program established under section 3174-T are eligible to participate in the Cub Care program instead of Medicaid. Rules adopted pursuant to this paragraph are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A; and

Sec. 2. 22 MRSA §3174-G, sub-§1, ¶E, as amended by PL 2001, c. 450, Pt. A, §1, is further amended to read:

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 shall 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 shall 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. 3. 22 MRSA §3174-G, sub-§1, ¶F, as enacted by PL 2001, c. 450, Pt. A, §2, is repealed.

Sec. 4. 22 MRSA §3174-FF, sub-§3, ¶H, as enacted by PL 2003, c. 673, Pt. MMM, §1, is repealed.