(2) The department shall continue to provide health services and needs, as described in ORS 411.710 (2), to a person described in subsection (1) of this section for a period of time not to exceed two years after the person ceases to receive general assistance if:

(a) Group health insurance is not available to the person through employment or otherwise; and either

(b) Termination of eligibility for health services and needs would seriously inhibit the person’s ability to continue employment; or

(c) The person’s earnings are not sufficient to allow the person a reasonable equivalent of the general assistance and health service benefits which would be available to the person in the absence of the earnings.

(3) If the person described in subsection (1) of this section is covered by a group health insurance plan, the department shall continue to provide health services and needs for the limited purpose of paying the costs of treatment for preexisting conditions until such costs are paid in whole or in part by the group health insurance policy.

(4) For purposes of this section, "approved treatment and rehabilitation program" and "chronic mental illness" shall be defined by the department by rule.

(5) For the purposes of general assistance, any work performed by a person while that person is hospitalized in a state or community psychiatric hospital shall not be considered employment.

(6) Nothing in this section is intended to limit the authority of the department to disregard the income of, and extend the period of eligibility for health services and needs to, persons other than those described in subsection (1) of this section. [1981 c.341 §2; 2001 c.900 §93]