New York State Health Care Reform Act (HCRA)

October 31, 2000

Notice to Electing Payors and Providers of 2001 Graduate Medical Education Pool Contribution Rates

Section 2807-t(6) of the PHL requires that prospective adjustments be made to Professional Education Pool (PEP) regional covered lives assessments and alternative inpatient surcharges to reconcile PEP regional under/over funding. The law specifies that such adjustments be made in "...the year next following the calculation of the reconciliation". Since funding of the 1999 PEP is now considered complete, the Department has finalized the level of under/over funding within each region and has incorporated this amount in the calculation of 2001 regional covered lives assessments. Note that pursuant to section 78 of the Health Care Reform Act of 2000, the alternative inpatient graduate medical education surcharges which shall apply for the period January 1, 2000 through June 30, 2003 shall be the same regional percentage allowances calculated for the period January 1, 1999 through December 31, 1999. The alternative inpatient GME surcharge rates and covered lives assessment levels for year 2001 are posted on page 4 of Attachment 5.

Please note that the level of 2001 regional covered lives assessment and alternative inpatient surcharges will be reflected in the 2001 service year portion of the Payor Report of Covered Lives Assessment and the Hospital Report of Patient Services Revenues for Inpatient Services.