Sec. B-3. Funding Dirigo Health administrative expenses. General administrative expenses of Dirigo Health, excluding administrative expenses directly associated with the Maine Quality Forum established in the Maine Revised Statutes, Title 24-A, section 6951, may be covered by the remaining balance of the $53,000,000 in funds transferred from the unappropriated surplus of the General Fund to the Dirigo Health Fund pursuant to Public Law 2003, chapter 469, Part H, section 1 and may not be covered by savings offset payments in accordance with the Maine Revised Statutes, Title 24-A, section 6913, subsection 2. Following receipt and review of the recommendations of the working group, established in section 1, regarding a funding strategy for Dirigo Health's administrative expenses and no later than February 15, 2006, the Board of Directors of Dirigo Health shall submit its recommendations, including any suggested legislation, for funding administrative expenses to the Joint Standing Committee on Insurance and Financial Services. Following receipt and review of the board's recommendation, the committee may report out a bill related to funding Dirigo Health's administrative expenses to the Second Regular Session of the 122nd Legislature.

PART C

Sec. C-1. 22 MRSA §3174-V, sub-§2, as amended by PL 2003, c. 469, Pt. A, §7, is further amended to read:

2. Contracted services. When a federally qualified health center otherwise meeting the requirements of subsection 1 contracts with a managed care plan or the Dirigo Health Insurance Program for the provision of MaineCare services, the department shall reimburse that center the difference between the payment received by the center from the managed care plan or the Dirigo Health Insurance Program and 100% of the reasonable cost, reduced by the total copayments for which members are responsible, incurred in providing services within the scope of service approved by the federal Health Resources and Services Administration or the commissioner. Any such managed care