N.Y. Comp. Codes R. & Regs. tit. 18, § 515.8
(a) Notwithstanding any provision of this Title to the contrary, the following persons are immediately excluded from participation in the medical assistance program:
(2) a health maintenance organization (HMO) furnishing services under a waiver granted pursuant to Federal law when:
(iii) such HMO has been excluded from the Federal Medicare program or any states' health care program.
(b) Appeals.
A person sanctioned under this section is not entitled to an administrative hearing but may, within 30 days of the date of the notice, submit written arguments and documentation regarding whether the determination was based upon mistake of fact.