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Attached for your information is a copy of the letter distributed by the New York State Department of Health (DOH) to all HMOs. This letter explains the impact of Chapter 41 of the Laws of 1992, which requires HMOs certified under Article 44 of the Public Health Law or Article 43 of the Insurance Law to pay hospital rates which are increased by a 9 percent differential, unless the HMO qualifies for a waiver. The letter also outlines the procedures developed by the Health Department to implement this policy.
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