Sec. 1. 22 MRSA §3174-G, sub-§1, ķE, as enacted by PL 1999, c. 731, Pt. OO, §1, is 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% 200% 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% 200% of the nonfarm income official poverty line.

Sec. 2. 22 MRSA §3174-T, sub-§2, ķA, as amended by PL 1999, c. 401, Pt. QQ, §1 and affected by §5, is further amended to read:

A. The maximum eligibility level, subject to adjustment by the commissioner under paragraph B, is 200% 300% of the nonfarm income official poverty line.

Sec. 3. 22 MRSA §3174-T, sub-§5, ķA, as amended by PL 1999, c. 731, Pt. PP, §2, is further amended to read:

A. Premiums must be paid at the beginning of each month for coverage for that month according to the following scale:

(1) Families with incomes between 150% and 160% of the nonfarm income official poverty line pay premiums of 5% of the benefit cost per child, but not more than 5% of the cost for 2 children;

(2) Families with incomes between 160% and 170% of the nonfarm income official poverty line pay premiums of