Cash Receipts Assessment Program

October 20, 2004

Dear Administrator/Controller:

Re: Cash Receipts Assessment Program

The following will provide a summary and related implementation instructions regarding recent statutory modifications made to the Nursing Home Cash Assessment Program authorized pursuant to Section 2807-d of the Public Health Law. These modifications include: <1)

Section 6 of Part C of Chapter 58 of the Laws of 2004 amends PHL 2807-d (2)(b)(vi) to read <"...for all such gross receipts received on or after April 1, 2003, through March 31, 2006, such assessment shall be five percent, and further provided that such assessment shall expire and be of no further effect for all such gross receipts received on or after April 1, 2006."

Until you receive further notice from the Department, please continue to file your reports and payments at the existing 2.5% assessment rate and pend filing of the required retrospective adjustments referenced above. This should not be construed as a waiver for meeting the increased assessment obligations required by statute. You will be advised through a subsequent transmittal when the increased payment obligations required by statute should be paid to the Department's Assessment Fund Administrator.

Section 29 of Part C of Chapter 58 of the Laws of 2004 contains the following provisions:

"

Payment checks submitted in response to this amnesty provision should be made payable to the

Regular Mail

Mr. Jerome Alaimo
Assessment Fund Administrator
Office of Pool Administration
P.O. Box 4757
Syracuse, New York 13221-4757

Express or Overnight Mail

Mr. Jerome Alaimo
Assessment Fund Administrator
Office of Pool Administration
344 South Warren Street
Syracuse, New York 13202-2008

These provisions also provide that uncollected interest and penalty for outstanding reports and payments due for periods prior to January 1, 2003, be abated by 50%. The Department is in the process of issuing estimated bills and/or adjusting existing Medicaid recoupments associated with such delinquencies to implement this abatement. Those not yet billed for delinquencies for the effective periods will shortly be receiving such notifications.

If you have any questions concerning your outstanding reports and payments, please contact Ms. Joanne Yaworsky at the Office of the Assessment Fund Administrator, Excellus BlueCross BlueShield, Central New York Region, at (315) 448-6781. For all other questions, please contact either Mr. Walter Susko or Ms. Karla Knuth of the Bureau of Financial Management and Information Support at (518) 473-4653.

Sincerely,

Mark H. Van Guysling
Assistant Director
Division of Health Care Financing

Enclosure