New York State Health Care Reform Act (HCRA)
November 7, 2002
Notice to Electing Payors and Providers of 2003 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 2001 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 2003 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 2003 are posted on page 6 of Attachment 5.
Please note that the level of 2003 regional covered lives assessments and alternative inpatient surcharges will be reflected in the 2003 service year portion of the Payor Report of Covered Lives Assessments and the Hospital Report of Patient Services Revenues for Inpatient Services.
Note that the existing surcharge and assessment requirements authorized under the Health Care Reform Acts of 1996 and 2000 are scheduled to expire on June 30, 2003. The Department will provide timely notification to all affected payors and providers of any legislative actions which may extend, or potentially amend, the surcharge and assessment requirements related to this 2003 period.