New York State Health Care Reform Act (HCRA)

May 30, 2003

Dear Payor/Provider:

Re: Statutory Changes to New York Health Care Reform Act (HCRA) of 2000

In an effort to allow sufficient time for implementation of any necessary updates or modifications to your claims processing or remittance systems, this is to inform you that as a result of recent statutory changes made to the New York Health Care Reform Act (HCRA) of 2000 enacted as part of the 2003-2004 State Fiscal Year Budget (i.e, Budget Bill), the Indigent Care and Health Care Initiatives surcharge percentages assessed on net patient service revenues of designated providers are changing for services performed on or after July 1, 2003.

Enclosed is an attachment indicating the appropriate surcharge percentages by payor type for dates of service January 1, 1997, through June 30, 2003, and July 1, 2003, through June 30, 2005.

The regionally varying Professional Education Pool surcharge applicable in addition to the Indigent Care and Health Care Initiatives surcharge on inpatient hospital payments made by affected non-electing payors has also increased for dates of service July 1, 2003, through June 30, 2005. The revised percentages are reflected on the second page of the attachment.

Additional updates resulting from the enactment of HCRA 2003 will be forwarded to you under separate cover in the near future.

If you have any questions regarding the above, please feel free to contact a HCRA representative at (518) 473-4653.

Sincerely,

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

Enclosures