Sec. 1. 22 MRSA §254, sub-§11-A, as enacted by PL 2001, c. 691, §1 and affected by §6, is amended to read:

11-A. Retention of eligibility. A person who was eligible for the program at any time from August 1, 1998 to July 31, 1999 and who does not meet the requirements of subsection 10 retains eligibility for the program if that person is a member of a household of an eligible person; and

Sec. 2. 22 MRSA §254, sub-§12, as enacted by PL 1999, c. 731, Pt. TT, §10, is amended to read:

12. Funds not to lapse. Funds appropriated from the General Fund to carry out the purpose of this section may not lapse but must carry from year to year.; and

Sec. 3. 22 MRSA §254, sub-§13 is enacted to read:

13.__Procedures.__Procedures for prior authorization of benefits under the program or preferred drug lists within the program must meet the requirements established for prior authorization and preferred drug lists in the MaineCare program under section 3174-GG.

Sec. 2. 22 MRSA §§3174-GG and 3174-HH are enacted to read:

§3174-GG.__Pharmacy benefit procedures

The requirements set out in this section apply to procedures for prior authorization of pharmacy benefits or preferred drug lists under the MaineCare program and the elderly low-cost drug program under section 254.__As used in this section "member" means a person receiving benefits under the MaineCare program or the elderly low-cost drug program.__The department shall adopt rules to implement this section.__Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

1.__Preferred drug lists.__In the adoption of any preferred drug lists, the provisions of this subsection apply.

A.__The department shall adopt rules specifying the number and classes of preferred drugs that must be determined to be clinically inappropriate or ineffective before permitting the use of a nonpreferred drug.

B.__The department shall adopt rules establishing preferred drug lists for off-label use of prescription drugs for