SCS/SB 1049 -This act establishes the Disabled Employee's Health Assistance Program (DEHAP), which is authorized by the federal Ticket to Work and Work Incentives Improvement Act. This act allows Medicaid eligibility for an employed person who meets the definition of disabled, satisfies asset limits, and who has an annual income of up to 250 percent of the federal poverty level. The asset limit for the new program is the same as that for the Medical Assistance – Permanently and Totally Disabled (MA-PTD) program, currently $999.99 for a single person and $2,000 for a couple with the standard exemptions. The individual must have a gross income of 250 percent or less of the federal poverty level. Individuals with gross income in excess of one hundred percent of the federal poverty level shall pay a specified monthly premium for participation. For income to qualify as earned income for the purposes of this program, the individual must demonstrate that Social Security and Medicare taxes are paid on the earnings. If an individual's employer offers health insurance that is more cost effective, the individual shall participate in the employer-sponsored insurance. The Department of Social Services, however, will be responsible for costs associated with the employer insurance. This act provides for DEHAP to expire on June 30, 2008. This act also provides that as to the permanent and totally disabled population, any income derived through certified extended employment at a sheltered workshop shall not be considered as income for determining Medicaid eligibility. This act has an emergency clause to be in full force and effect on July 1, 2006. ADRIANE CROUSE