Sec. 1. 22 MRSA §3174-T, sub-§2, ķA-1 is enacted to read:

A-1.__Beginning October 1, 1999, the maximum eligibility level, subject to adjustment by the commissioner under section 3174-U, subsection 4, is 200% of the nonfarm income official poverty line.

Sec. 2. 22 MRSA §§3174-U and 3174-V are enacted to read:

§3174-U.__Healthy Maine Program

The Healthy Maine Program, referred to in this section as the "program," is established to provide health coverage to the people of Maine utilizing the funds provided to the State through the settlement of pending or potential legal action brought by the State against manufacturers of tobacco products.__The department shall administer the program.

1.__Tobacco Settlement Dedicated Fund.__The Tobacco Settlement Dedicated Fund, referred to in this section as the "fund," is established to receive all revenues from any settlement of pending or potential legal action against tobacco manufacturers brought by the State, any funds appropriated or allocated for expenditure by the program and any other funds, revenues, grants and contributions.

A.__Revenues in the fund may be used only for the purposes listed in subsection 2.

B.__The fund is a special, dedicated, nonlapsing fund and any interest generated by the fund is credited to the fund.__ The Treasurer of State shall manage the fund.

2.__Program benefits.__The program shall provide benefits as follows:

A.__Prescription drug coverage for persons eligible under subsection 3, paragraphs A;

B.__Medicaid coverage for persons eligible under subsection 3, paragraph B;

C.__Cub Care coverage for persons eligible under subsection 3, paragraph C; and

D.__Health coverage at least equivalent to the coverage provided under the Maine Medicaid program on December 31, 1998 for persons eligible under subsection 3, paragraph D.