Sec. 1. 22 MRSA §3174-G, sub-§1-A, as amended by PL 1999, c. 790, Pt. A, §25, is repealed.

Sec. 2. 22 MRSA §3174-G, sub-§1-B, as amended by PL 1999, c. 731, Pt. KK, §1, is further amended to read:

1-B. Funding. State funds necessary to implement subsection 1-A 1-C must include General Fund appropriations and Other Special Revenue allocations from the Fund for a Healthy Maine to the elderly low-cost drug program operated pursuant to section 254, including rebates received in that program from pharmaceutical manufacturers, that are no longer needed in that program as a result of the Medicaid waiver obtained pursuant to subsection 1-A 1-C.

Sec. 3. 22 MRSA §3174-G, sub-§1-C is enacted to read:

1-C.__Elderly prescription drug program.__The department shall apply to the federal Centers for Medicare and Medicaid Services for a waiver or amend a pending or current waiver under the Medicaid program authorizing the department to use federal matching dollars to enhance the prescription drug benefits available to persons who qualify for the elderly low-cost drug program established under section 254 on the effective date of this subsection.__If funds permit, the department has the authority to establish income eligibility levels for the elderly low-cost drug program for persons with income higher than the income eligibility level established in section 254, provided that the income eligibility limit does not exceed 200% of the federal nonfarm income official poverty level.__To the extent reasonably achievable under the federal waiver process, the waiver must include the full range of prescription drugs provided under the Medicaid program on the effective date of this subsection and limit copayments and cost sharing for participants.__If the waiver is granted, the department is authorized to use funds appropriated or allocated to provide prescription drugs under the elderly low-cost drug program established in section 254 or the Healthy Maine Prescription Program established under section 258 to enhance prescription drug coverage under this section.__The department is also authorized to amend the waiver or adjust program requirements as necessary to take advantage of enhanced federal matching funds that may become available.__Coverage under a waiver under this subsection must be no less beneficial to persons eligible for the elderly low-cost drug program than the coverage available on September 30, 2001 under the program.