New York State Health Care Reform Act (HCRA)

Repeal of Previously Enacted Exemption of Inpatient Payments Made by Non-Electing Student Health and Accident Policies from the Alternative Per-Unit of Service Professional Education Pool Surcharge

This provides notification that a previously enacted exemption of inpatient payments made by non-electing student health and accident policies from the Alternative Per-Unit of Service Professional Education Pool Surcharge has been repealed retroactive to the initial effective date of April 1, 2005. We believe that the repeal of this prior exemption should have no effect on previously impacted payors since they all have likely chosen to make direct payments to the HCRA Pools as a result of another standing provision which exempted student health and accident policies from the Professional Education Pool Covered Lives Assessments.

This recent statutory change was adopted in Section 16 of Part C of Chapter 109 of the Laws of 2006 which repealed Public Health Law Section 2807-s (1)(c), effective retroactive to April 1, 2005. The repealed provision reads as follows: For discharges on and after April first, two thousand five, the allowance established pursuant to this section shall not be applied to inpatient hospital services provided to any person covered under a student policy issued pursuant to article forty-three of the insurance law, or a blanket student accident, blanket student health, or blanket student accident and health insurance policy, provided however, that any cost savings attributed to this paragraph shall be reflected in the premiums of such policies.

Should you have any questions regarding this matter please contact a HCRA representative at (518) 474-1673.