Court of Appeals for the Second Circuit January 5, 1990, No. 1110, Docket 89-4004 (New York ex rel. Perales v. Sullivan)

CARDAMONE, Circuit Judge:

The sole legal question involved in this appeal is whether New York hospitals may include in their reimbursement rates under the Medicaid Act, 42 U.S.C.A. §§ 1396-1396s (West 1983 & Supp.1989), some of the costs incurred in obtaining excess medical malpractice insurance for attending physicians.