New York State Health Care Reform Act (HCRA)

January 25, 2002

Notice to Electing Payors and Providers of Revised 2002 Graduate Medical Education Pool Contribution Rates

The 2002 Professional Education Pool (PEP) regional covered lives assessments that were transmitted to electing payors and third party administrators on November 9, 2001, have been revised based on recently enacted legislation. Section 2807-s(6)(a)(vi) of the PHL has been amended to increase 2002 statewide collections $20 million from the level of collections required for 2001. Consequently, the 2002 regional covered lives assessments have been adjusted to incorporate this mandated revision. Note that pursuant to Section 2807-s(2)(c) of the PHL, the alternative inpatient PEP 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 surcharges and covered lives assessments for year 2002 are posted on page 5 of Attachment 5. These amounts are reflected in the 2002 service year portion of the Payor Report of Covered Lives Assessment and the Hospital Report of Patient Services Revenue for Inpatient Services.