(1) As used in this section and in section nine B, the following words shall have the following meanings:

''Beneficiary'', a person who, pursuant to eligibility criteria established by the terms and conditions of a demonstration project and regulations promulgated by the division, is determined to be eligible for medical benefits pursuant to this section.

''Demonstration project'', (i) a program of medical benefits approved by the Secretary pursuant to section 1115(a) of the Social Security Act, 42 USC Section 1315(a) or any other federal waiver or demonstration authority; or (ii) a project approved by said secretary for which federal reimbursement is available pursuant to any successor to Title XIX if such project is similar to any such project approved or which would be approved under said section 1115(a), meets their requirements for a demonstration project established by this section and is implemented pursuant to a plan filed with the joint committee on health care and the house and senate committees on ways and means sixty days prior to implementation.

''Children's and Seniors' Health Care Assistance Fund'', the fund established by section two FF of chapter twenty-nine intended to wholly support the costs of medical benefits and administration for expansion beneficiaries under the demonstration project and a pilot program of pharmaceutical assistance for the elderly.

''Program of health care assistance'', programs of full or partial medical care funded wholly by the commonwealth for which the demonstration project seeks federal reimbursement.

''MassHealth'', a program of full or partial medical benefits provided under the demonstration project as authorized by this section.

''Medical benefits'', health care services including managed care programs, provided to beneficiaries pursuant to the terms and conditions of a demonstration project and regulations promulgated by the division and including, but not limited to, assistance with premiums and costs sharing and medical insurance purchased for beneficiaries pursuant to section 18 or benefits authorized by 42 U.S.C. section 1396e.

(2) The division may, subject to appropriation and the provisions of section nine B, implement MassHealth in accordance with the terms and conditions of a demonstration project, notwithstanding the provisions of any other section of this chapter. MassHealth may provide a program or programs of medical benefits to one or more of the beneficiary categories described in the following clauses:

1. (a) children and adults who, in the absence of a demonstration project, would be otherwise eligible for medical assistance pursuant to section nine;
2. (b) infants to age 1 and pregnant women whose financial eligibility, as determined by the division, does not exceed 200 per cent of the federal poverty level and children and adolescents aged 1 to 20 years, inclusive, whose financial eligibility, as determined by the division, does not exceed 150 per cent of the federal poverty level.
3. (c) children and adolescents, from birth to 18 years, inclusive, whose financial eligibility as determined by the division exceeds 133 per cent but is not more than 300 per cent of the federal poverty level, including such children and adolescents made eligible for medical benefits under this chapter by Title XXI of the Social Security Act.
4. (d) persons aged 21 to 64, inclusive, whose financial eligibility, as determined by the division, does not exceed 133 per cent of the federal poverty level; provided, however, that such persons shall meet such other eligibility criteria that the division and the secretary may establish.
5. (e) persons who are disabled, blind or chronically ill and eligible for benefits under the provisions of sections 16 and 16A.

6. (f) persons receiving, or eligible to receive, unemployment insurance benefits who meet the eligibility requirements established under MassHealth and who, in the absence of a demonstration project, would otherwise qualify for the health insurance program established pursuant to subsection (1) of section fourteen G of chapter one hundred and fifty-one A;

   [Clause (g) of subsection (2) effective until April 1, 2003. For text effective April 1, 2003, see below.]