PRIOR PRINTER'S NO. 1973 PRINTER'S NO. 1985
No. 1440 Session of 1998
INTRODUCED BY TOMLINSON, KUKOVICH, HOLL, JUBELIRER, EARLL, FUMO,
PICCOLA, LOEPER, HELFRICK, BODACK, SCHWARTZ, CONTI,
STAPLETON, THOMPSON, WHITE, GERLACH, MURPHY, SALVATORE,
O'PAKE, MUSTO, MELLOW AND BRIGHTBILL, APRIL 29, 1998
SENATOR TILGHMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED,
MAY 4, 1998
AN ACT
1 Amending the act of December 2, 1992 (P.L.741, No.113), entitled
2 "An act providing a comprehensive plan for health care for
3 uninsured children; providing for medical education
4 assistance; making appropriations; and making repeals,"
5 further providing for legislative findings and intent, for
6 definitions, for children's health care, for outreach, for
7 payor of last resort and for limitation on expenditure of
8 funds.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 102(6) of the act of December 2, 1992
12 (P.L.741, No.113), known as the Children's Health Care Act, is
13 amended to read:
14 Section 102. Legislative findings and intent.
15 The General Assembly finds and declares as follows:
16 * * *
17 [(6) Although the proper implementation of spenddown
18 provisions under medical assistance should result in the
19 provision of the vast majority of all hospital care for the
1 uninsured through the medical assistance program, hospitals
2 vary widely in the application of the spenddown provision so
3 patients can qualify for medical assistance.]
4 * * *
5 Section 2. The definitions of "child," "department,"
6 "grantee," "management team," "secretary" and "spenddown" in
7 section 103 of the act are amended and the section is amended by
8 adding a definition to read:
9 Section 103. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Child." A person under [13] 19 years of age[, except as
14 provided for in section 701(d)].
15 * * *
16 "Contractor." An entity awarded a contract under Chapter 7
17 to provide health care services under this act. The term
18 includes an entity and its subsidiary which is established under
19 40 Pa.C.S. Ch. 61 (relating to hospital plan corporations) or 63
20 (relating to professional health services plan corporations);
21 the act of May 17, 1921 (P.L.682, No.284), known as The
22 Insurance Company Law of 1921; or the act of December 29, 1972
23 (P.L.1701, No.364), known as the Health Maintenance Organization
24 Act.
25 * * *
26 ["Department." The Department of Public Welfare of the
27 Commonwealth.]
28 * * *
29 ["Grantee." An entity selected by the management team to
30 receive a grant under Chapter 7. The term includes an entity,
19980S1440B1985 - 2 -
1 and its subsidiary, which is established under 40 Pa.C.S. Ch. 61
2 (relating to hospital plan corporations) or 63 (relating to
3 professional health services plan corporations); the act of May
4 17, 1921 (P.L.682, No.284), known as The Insurance Company Law
5 of 1921; or the act of December 29, 1972 (P.L.1701, No.364),
6 known as the Health Maintenance Organization Act.]
7 * * *
8 ["Management team." The Children's Health Insurance
9 Management Team established in section 701(f).]
10 * * *
11 ["Secretary." The Secretary of the Department of Health.
12 "Spenddown." A qualifying procedure for medical assistance
13 set forth in 55 Pa. Code Ch. 181 (relating to income provisions
14 for categorically needy NMP-MA and MNO-MA).]
15 * * *
16 Section 3. Sections 701, 702, 703 and 3101 of the act are
17 amended to read:
18 Section 701. Children's health care.
19 (a) Dedicated funding.--The fund shall be dedicated
20 exclusively for distribution by the [management team for]
21 Insurance Department through contracts in order to provide free
22 and subsidized health care services under this section and to
23 develop and implement outreach activities required under section
24 702.
25 (b) Distribution of fund.--
26 (1) The fund shall be used to fund health care services
27 for children as specified in this section. The [management
28 team] Insurance Department shall assure that the program is
29 implemented Statewide. All [grants made] contracts awarded
30 under this section shall be [on an equitable basis, based on
19980S1440B1985 - 3 -
1 the number of enrolled eligible children or on eligible
2 children anticipated to be enrolled.] awarded through a
3 competitive procurement process. The [management team]
4 Insurance Department shall use its best efforts to [provide
5 grants that] ensure that eligible children across this
6 Commonwealth have access to health care services to be
7 provided under this act.
8 (2) No more than 7.5% of the [grant] amount of the
9 contract may be used for administrative expenses of the
10 [grantees] contractor. If, after the first three full years
11 of operation, any [grantee] contractor presents documented
12 evidence that administrative expenses are in excess of 7.5%
13 of the [grant] amount of the contract, the [management team]
14 Insurance Department may make an additional allotment of
15 funds, not to exceed 2.5% of the [grant] amount of the
16 contract, for future administrative expenses to the [grantee]
17 contractor to the extent that the [management team] Insurance
18 Department finds the expenses reasonable and necessary.
19 (3) No less than 70% of the fund shall be used to
20 provide the health care services provided under this act for
21 children eligible for free care under subsection (d). When
22 the [management team] Insurance Department determines that
23 70% of the fund is not needed in order to achieve maximum
24 enrollment of children eligible for free care and promulgates
25 a final form regulation, with proposed rulemaking omitted,
26 this paragraph shall expire.
27 [(4) The management team shall submit a budget request
28 for General Fund money necessary for the operation of the
29 council and the management team.
30 (5)] (4) To ensure that inpatient hospital care is
19980S1440B1985 - 4 -
1 provided to eligible children, each primary care physician
2 providing primary care services shall make necessary
3 arrangements for admission to the hospital and for necessary
4 specialty care. [for a child needing the care and shall
5 continue to care for the child as a medical assistance
6 provider in the hospital as appropriate. When appropriate,
7 the grantee, the enrollee and the hospital shall initiate
8 applications for medical assistance for inpatient hospital
9 care through spenddown. Payments made under this paragraph
10 shall be limited to the amount by which the child's family
11 income exceeds the Medically Needy Income Level, also known
12 as the spenddown amount, under medical assistance. Payments
13 made under this paragraph shall be considered reimbursement
14 of costs under another public program of the State for
15 medical assistance purposes as specified in section
16 1902(a)(17) of the Social Security Act (Public Law 74-271, 42
17 U.S.C. § 1396a(a)(17)).]
18 (c) Eligibility for enrollment in programs receiving funding
19 through fund.--
20 (1) Any organization or corporation receiving funds from
21 the [management team] Insurance Department to provide
22 coverage of health care services shall enroll, to the extent
23 that funds are available, any child who meets all of the
24 following:
25 (i) Except for newborns, has been a resident of this
26 Commonwealth for at least 30 days prior to enrollment.
27 (ii) Is not covered by a health insurance plan, a
28 self-insurance plan or a self-funded plan or is not
29 eligible for or covered by medical assistance.
30 (iii) Is qualified based on income under subsection
19980S1440B1985 - 5 -
1 (d) or (e).
2 [(iv) Has not refused to cooperate with the grantee
3 or the hospital as provided in subsection (b)(5).]
4 (iv) Meets the citizenship requirements of the
5 Medicaid program administered by the Department of Public
6 Welfare.
7 (2) Enrollment may not be denied on the basis of a
8 preexisting condition, nor may diagnosis or treatment for the
9 condition be excluded based on the condition's preexistence.
10 (d) Free insurance.--The provision of health care insurance
11 for eligible children shall be free to a child under [six] 19
12 years of age whose family income is no greater than [185%] 200%
13 of the Federal poverty level. [and shall be free to a child six
14 years of age but less than the maximum program age whose family
15 income is no greater than 100% of the Federal poverty level,
16 where the maximum program age shall be:
17 (1) 13 years of age for the period ending September 30,
18 1993;
19 (2) 14 years of age for the period ending September 30,
20 1994;
21 (3) 15 years of age for the period ending September 30,
22 1995;
23 (4) 16 years of age for the period ending September 30,
24 1996; and
25 (5) 17 years of age thereafter.]
26 (e) Subsidized insurance.--
27 (1) The provision of health care insurance for an
28 eligible child who is under [six] 19 years of age and whose
29 family income is greater than [185%] 200% of the Federal
30 poverty level but no greater than 235% of the Federal poverty
19980S1440B1985 - 6 -
1 level may be subsidized by the fund at a rate not to exceed
2 50%.
3 (2) The difference between the pure premium of the
4 minimum benefit package in subsection (l)(7) and the subsidy
5 provided under this subsection shall be the amount paid by
6 the family of the eligible child purchasing the minimum
7 benefit package.
8 [(3)] (e.1) Purchase of insurance.--The family of an
9 eligible child whose family income makes the child eligible
10 for free or subsidized care but who cannot receive care due
11 to lack of funds in the fund may purchase coverage for the
12 child at cost.
13 [(f) Duties of management team.--The Children's Health
14 Insurance Management Team, comprised of the Secretary of the
15 Budget, the Secretary of Health and the Insurance Commissioner,
16 is established. The management team shall:
17 (1) Prepare and approve a budget using the amounts
18 collected from the fund and any other Federal or private
19 funds designated for the fund.
20 (2) Execute contracts related to expanding access to
21 health care services for eligible children as provided in
22 this act.
23 (3) Promulgate regulations necessary for the
24 implementation and administration of this chapter.]
25 (g) Duties of Insurance Department.--The Insurance
26 Department shall:
27 [(1) Annually approve insurance rates requested by any
28 grantee for the coverage of services specified in this act.]
29 (1) Administer the children's health care program
30 pursuant to this act.
19980S1440B1985 - 7 -
1 (2) Review all bids and approve and execute all
2 contracts [executed] for the purpose of expanding access to
3 health care services for eligible children as provided for in
4 this chapter.
5 (3) Conduct monitoring and oversight [by any] of
6 contracts entered into.
7 (4) Issue an annual report to the Governor, the General
8 Assembly and the public for each fiscal year outlining
9 primary health services funded for the year, detailing the
10 outreach and enrollment efforts [by each grantee], and
11 reporting by county the number of children receiving health
12 care services from the fund, the projected number of eligible
13 children and the number of eligible children on waiting lists
14 for health care services.
15 (5) In consultation with appropriate Commonwealth
16 agencies, coordinate the development and supervision of the
17 outreach plan required under section 702.
18 (6) In consultation with appropriate Commonwealth
19 agencies, monitor, review and evaluate the adequacy,
20 accessibility and availability of services delivered to
21 children who are enrolled in the health insurance program
22 established under this chapter.
23 (g.1) Regulatory authority.--The Insurance Department may
24 promulgate regulations necessary for the implementation and
25 administration of this chapter.
26 [(h) Duties of Department of Health.--The Department of
27 Health shall:
28 (1) Provide for staff for assisting the council in
29 carrying out its duties.
30 (2) Coordinate and supervise the enrollment outreach
19980S1440B1985 - 8 -
1 activities related to the health insurance program
2 established under this chapter.
3 (3) Monitor, review and evaluate the adequacy,
4 accessibility and availability of services delivered to
5 children who are enrolled in the health insurance program
6 established under this chapter.]
7 (i) Council.--The Children's Health Advisory Council is
8 established within the [Department of Health] Insurance
9 Department as an advisory council.
10 (1) The council shall consist of [12] 14 voting members.
11 Members provided for in subparagraphs (iv), (v), (vi), (vii)
12 [and (viii)], (viii), (x) and (xi) shall be appointed by the
13 [secretary] Insurance Commissioner. The council shall be
14 geographically balanced on a Statewide basis and shall
15 include:
16 (i) The Secretary of Health ex officio or a
17 designee.
18 (ii) The Insurance Commissioner ex officio or a
19 designee.
20 (iii) The Secretary of Public Welfare ex officio or
21 a designee.
22 (iv) A representative with experience in children's
23 health from a school of public health located in this
24 Commonwealth.
25 (v) A physician with experience in children's health
26 appointed from a list of three qualified persons
27 recommended by the Pennsylvania Medical Society.
28 (vi) A representative of a children's hospital or a
29 hospital with a pediatric outpatient clinic appointed
30 from a list of three persons submitted by the Hospital
19980S1440B1985 - 9 -
1 Association of Pennsylvania.
2 (vii) A parent of a child who receives primary
3 health care coverage from the fund. [The initial
4 appointment shall be a parent of a child who is eligible
5 to receive primary health care coverage from the fund.]
6 (viii) A midlevel professional appointed from lists
7 of names recommended by Statewide associations
8 representing midlevel health professionals.
9 (ix) [The chairman and the minority chairman of the
10 Public Health and Welfare Committee of the Senate and the
11 chairman and the minority chairman of the Health and
12 Welfare Committee of the House of Representatives ex
13 officio or their designees.] A senator appointed by the
14 President pro tempore of the Senate, a senator appointed
15 by the minority leader of the Senate, a representative
16 appointed by the Speaker of the House of Representatives
17 and a representative appointed by the minority leader of
18 the House of Representatives.
19 (x) A representative from a private NONPROFIT <--
20 foundation.
21 (xi) A representative of business WHO IS NOT A <--
22 CONTRACTOR OR PROVIDER OF PRIMARY HEALTH CARE INSURANCE
23 UNDER THIS CHAPTER.
24 (2) [All initial appointments to the council shall be
25 made within 60 days of the effective date of this act, and
26 the council shall commence operations immediately
27 thereafter.] If any specified organization should cease to
28 exist or fail to make a recommendation within 90 days of a
29 request to do so, the council shall specify a new equivalent
30 organization to fulfill the responsibilities of this section.
19980S1440B1985 - 10 -
1 (3) The [Secretary of Health] Insurance Commissioner
2 shall chair the council. The members of the council shall
3 annually elect, by a majority vote of the members, a vice
4 chairperson from among the members of the council.
5 (4) The presence of [seven] eight members shall
6 constitute a quorum for the transacting of any business. Any
7 act by a majority of the members present at any meeting at
8 which there is a quorum shall be deemed to be that of the
9 council.
10 (5) All meetings of the council shall be conducted
11 pursuant to the act of July 3, 1986 (P.L.388, No.84), known
12 as the Sunshine Act, unless otherwise provided in this
13 section. The council shall meet at least [quarterly during
14 its first year of operation and annually thereafter] annually
15 and may provide for special meetings as it deems necessary.
16 Meeting dates shall be set by a majority vote of members of
17 the council or by call of the chairperson upon seven days'
18 notice to all members. The council shall publish [a schedule
19 of] notice of its meetings in the Pennsylvania Bulletin.
20 [Notice shall be published at least once in each calendar
21 quarter and shall list a schedule of meetings of the council
22 to be held in the subsequent calendar quarter.] Notice shall
23 specify the date, time and place of the meeting and shall
24 state that the council's meetings are open to the general
25 public. All action taken by the council shall be taken in
26 open public session and shall not be taken except upon a
27 majority vote of the members present at a meeting at which a
28 quorum is present.
29 (6) The members of the council shall not receive a
30 salary or per diem allowance for serving as members of the
19980S1440B1985 - 11 -
1 council but shall be reimbursed for actual and necessary
2 expenses incurred in the performance of their duties.
3 (7) Terms of council members shall be as follows:
4 (i) The appointed members shall serve for a term of
5 three years and shall continue to serve thereafter until
6 their successors are appointed.
7 (ii) An appointed member shall not be eligible to
8 serve more than two full consecutive terms of three
9 years. Vacancies shall be filled in the same manner in
10 which they were designated within 60 days of the vacancy.
11 (iii) An appointed member may be removed by the
12 appointing authority for just cause and by a vote of at
13 least seven members of the council.
14 (8) The council shall review [and comment on the
15 outreach plan submitted by any potential grantee as specified
16 in section 702] outreach activities and may make
17 recommendations to the Insurance Department.
18 (9) [In conjunction with the Department of Health, the]
19 The council shall review and evaluate the accessibility and
20 availability of services delivered to children enrolled in
21 the program.
22 [(j) Grant criteria.--The management team shall annually
23 solicit applications for grants to be made pursuant to this
24 section]
25 (j) Criteria.--The Insurance Department shall solicit bids
26 and award contracts through a competitive procurement process
27 pursuant to the following:
28 (1) To the fullest extent practicable, [grants shall be
29 made to applicants] contracts shall be awarded to entities
30 that contract with providers to provide primary care services
19980S1440B1985 - 12 -
1 for enrollees on a cost-effective basis. The [management
2 team] Insurance Department shall require [grantees]
3 contractors to use appropriate cost-management methods so
4 that the fund can be used to provide the basic primary
5 benefit services to the maximum number of eligible children
6 and, whenever possible, to pursue and utilize available
7 public and private funds. [This shall include contracting
8 with qualified, cost-effective providers, including hospital
9 outpatient departments, HMO's, managed care providers,
10 clinics, group practices and individual practitioners.]
11 (2) To the fullest extent practicable, the [management
12 team shall ensure that any grantee who determines that a
13 child is not eligible because the child is eligible for
14 medical assistance provide in writing to the family of the
15 child the telephone number of the county assistance office
16 where the family can call to apply for medical assistance.]
17 Insurance Department shall require that any contractor comply
18 with all procedures relating to coordination of benefits as
19 required by the Insurance Department or the Department of
20 Public Welfare.
21 (3) Contracts may be for a term of up to three years.
22 (k) Health service corporations and hospital plan
23 corporations.--[Within 90 days of the effective date of this
24 act] Upon receipt of a request for proposal from the Insurance
25 Department, each health [service] plan corporation [and hospital
26 plan corporation] or its entities doing business in this
27 Commonwealth shall [apply] submit a bid to the Insurance
28 Department [for funds from the fund] to carry out the purposes
29 of this section in the area serviced by the corporation.
30 (l) Contracts.--[Any grantee] A contractor with whom the
19980S1440B1985 - 13 -
1 Insurance Department enters into a contract shall do the
2 following:
3 (1) Ensure to the maximum extent possible that eligible
4 children have access to primary health care physicians and
5 nurse practitioners on an equitable Statewide basis.
6 (2) Contract with qualified, cost-effective providers,
7 which may include primary health care physicians, nurse
8 practitioners, clinics and health maintenance organizations,
9 to provide primary and preventive health care for enrollees
10 on a basis best calculated to manage the costs of the
11 services, including, but not limited to, using managed health
12 care techniques and other appropriate medical cost management
13 methods.
14 (3) Ensure that the family of a child who may be
15 eligible for medical assistance receives assistance in
16 applying for medical assistance, including, at a minimum,
17 written notice of the telephone number and address of the
18 county assistance office where the family can apply for
19 medical assistance.
20 (4) Maintain waiting lists of children financially
21 eligible for benefits who have applied for benefits but who
22 were not enrolled due to lack of funds.
23 (5) Strongly encourage all providers who provide primary
24 care to eligible children to participate in medical
25 assistance as qualified EPSDT providers and to continue to
26 provide care to children who become ineligible for payment
27 under the fund but who qualify for medical assistance.
28 [(6) Report annually to the management team and the
29 General Assembly by county and by the provider type on the
30 number of primary care providers providing primary care to
19980S1440B1985 - 14 -
1 eligible children.]
2 (7) Provide the following minimum benefit package for
3 eligible children:
4 (i) Preventive care. This subparagraph includes
5 well-child care visits in accordance with the schedule
6 established by the American Academy of Pediatrics and the
7 services related to those visits, including, but not
8 limited to, immunizations, health education, tuberculosis
9 testing and developmental screening in accordance with
10 routine schedule of well-child visits. Care shall also
11 include a comprehensive physical examination, including
12 X-rays if necessary, for any child exhibiting symptoms of
13 possible child abuse.
14 (ii) Diagnosis and treatment of illness or injury,
15 including all medically necessary services related to the
16 diagnosis and treatment of sickness and injury and other
17 conditions provided on an ambulatory basis, such as
18 laboratory tests, wound dressing and casting to
19 immobilize fractures.
20 (iii) Injections and medications provided at the
21 time of the office visit or therapy; and outpatient
22 surgery performed in the office, a hospital or
23 freestanding ambulatory service center, including
24 anesthesia provided in conjunction with such service or
25 during emergency medical service.
26 (iv) Emergency accident and emergency medical care.
27 (v) Prescription drugs [with a copayment of $5 per
28 prescription].
29 (vi) Emergency, preventive and routine dental care.
30 This subparagraph does not include orthodontia or
19980S1440B1985 - 15 -
1 cosmetic surgery.
2 (vii) Emergency, preventive and routine vision care,
3 including the cost of corrective lenses and frames, not
4 to exceed two prescriptions per year.
5 (viii) Emergency, preventive and routine hearing
6 care.
7 (ix) Inpatient hospitalization up to 90 days per
8 year for eligible children. [who cannot qualify through
9 spenddown provisions for benefits under the medical
10 assistance program.
11 (x) Spenddown amount as provided for in subsection
12 (b)(5).]
13 (8) Each [grantee] contractor shall provide an insurance
14 identification card to each eligible child covered under [a
15 program receiving grants from the fund] contracts executed
16 under this act. The card must not specifically identify the
17 holder as low income.
18 (m) Waiver.--The [department] Insurance Department may grant
19 a waiver of the minimum benefit package of subsection (l)(7)
20 upon demonstration by the applicant that it is providing health
21 care services for eligible children that meet the purposes and
22 intent of this section.
23 [(n) Insurance rate filing request information.--The
24 Insurance Commissioner shall make a copy of and forward to the
25 council all relevant information and data filed by each health
26 service corporation and hospital plan corporation doing business
27 in this Commonwealth, or by any other grantee, as part of an
28 insurance rate filing request for programs receiving grants
29 under this section.]
30 (o) Review.--After the first year of operation and
19980S1440B1985 - 16 -
1 periodically thereafter, the [management team] Insurance
2 Department, in consultation with appropriate Commonwealth
3 agencies, shall review enrollment patterns for both the free
4 insurance program and the subsidized insurance program. The
5 [management team] Insurance Department shall consider the
6 relationship, if any, among enrollment, enrollment fees, income
7 levels and family composition. Based on the results of this
8 study and the availability of funds, the [management team]
9 Insurance Department is authorized to adjust the maximum income
10 ceiling for free insurance and the maximum income ceiling for
11 subsidized insurance by regulation. In no event, however, shall
12 the maximum income ceiling for free insurance be raised above
13 [185%] 200% of the Federal poverty level, nor shall the maximum
14 income ceiling for subsidized insurance be raised above 235% of
15 the Federal poverty level. Changes in the maximum income ceiling
16 shall be promulgated as a final-form regulation with proposed
17 rulemaking omitted in accordance with the act of June 25, 1982
18 (P.L.633, No.181), known as the Regulatory Review Act.
19 Section 702. Outreach.
20 [(a) Plan.--Any entity seeking funding from the fund for
21 providing services under this chapter shall provide not less
22 than 2.5% of the grant award in in-kind services for outreach
23 and shall submit as part of its application to the management
24 team an outreach plan aimed at enrolling eligible children in
25 the program established under this chapter.]
26 (a) Plan.--The Insurance Department, in consultation with
27 appropriate Commonwealth agencies, shall coordinate the
28 development of an outreach plan to inform potential contractors,
29 providers and enrollees regarding eligibility and available
30 benefits. The plan shall include provisions for reaching special
19980S1440B1985 - 17 -
1 populations, including nonwhite and non-English-speaking
2 children and children with disabilities; for reaching different
3 geographic areas, including rural and inner-city areas; and for
4 assuring that special efforts are coordinated within the overall
5 outreach activities throughout this Commonwealth.
6 (b) Review.--The council shall review the outreach [plan and
7 the performance of the entities receiving funding from the fund
8 at reasonable intervals and recommend changes in the plan or in
9 the implementation of the plan as it deems in the best interests
10 of the children to be served. Outreach activities shall continue
11 as long as the fund is in existence. In no instance may a
12 grantee be required to provide in excess of 2.5% of the grant
13 award in in-kind services for outreach.
14 (c) Private funding for outreach activities.--The council,
15 in conjunction with the grantees, the Insurance Department, the
16 Department of Education, the Department of Health and the
17 department shall seek funding from private foundations, Federal
18 agencies and other funding sources for the development and
19 implementation of the outreach plan.] activities and recommend
20 changes as it deems in the best interests of the children to be
21 served.
22 Section 703. Payor of last resort; insurance coverage.
23 The [grantee] contractor shall not pay any claim on behalf of
24 an enrolled child unless all other Federal, State, local or
25 private resources available to the child or the child's family
26 are utilized first. The Insurance Department, in cooperation
27 with the Department of Public Welfare, shall determine that no
28 other insurance coverage is available to the child through a
29 custodial or noncustodial parent on an employment-related or
30 other group basis. If such insurance coverage is available, the
19980S1440B1985 - 18 -
1 Insurance Department shall reevaluate the child's eligibility
2 under section 701.
3 Section 3101. Limitation on expenditure of funds.
4 In no case shall the total amount of annual [grant] contract
5 awards authorized in Chapter 7 exceed the amount of cigarette
6 tax receipts annually deposited into the fund pursuant to
7 section 1296 of the act of March 4, 1971 (P.L.6, No.2), known as
8 the Tax Reform Code of 1971, and any other Federal or [private]
9 State funds received through the fund. The provision of
10 children's health care through the fund shall in no way
11 constitute an entitlement derived from the Commonwealth or a
12 claim on any other funds of the Commonwealth.
13 Section 4. All entities receiving grants on the effective
14 date of this act shall continue to receive funds and provide
15 services as required under this act until notice is received
16 from the Insurance Department.
17 Section 5. This act shall expire July 1, 2003.
18 Section 6. This act shall take effect immediately.
D15L40DMS/19980S1440B1985 - 19 -