Supplemental GME Regional Covered Lives Assessment Rates

May 29, 2008

Dear Chief Executive Officer:

Section 15 of Part B of Chapter 58 of the Laws of 2008 added Public Health Law (PHL) Section 2807-s (6) (a) (xiii), which requires an additional $64.2 million of Professional Education Pool (PEP) covered-lives assessments funding for the October 1, 2008, through March 31, 2009, period. Each region's proportional share of this funding target will be based on the same allocation formula specified in statute for the Graduate Medical Education component of 2008 PEP assessment (i.e., PHL 2807-s (6) (b)). The law requires that this additional assessment be reported separately and paid in six monthly installments by the 10th day of each affected month. Initial payments are to be based on each payor's monthly enrollment count for the preceding month, and subsequently reconciled on a month to month basis to reflect actual enrollment counts for each applicable month.

The enclosed schedule provides the additional supplemental regional covered lives assessments to take effect October 1, 2008. Instructions will follow under separate cover regarding the manner in which supplemental covered lives assessments will be reflected in the 2008 service year portion of the Payor Report of Covered Lives Assessment and the Hospital Report of Patient Services Revenues for Inpatient Services.

If you use a TPA, we suggest that you contact your TPA directly concerning any questions you may have regarding this notice. Others having questions regarding the foregoing, should contact a HCRA representative at (518) 474-1673.

Sincerely,

John E. Ulberg, Jr.
Director
Division of Health Care Financing

Enclosure