ENT-40 REDUCE MEDICARE'S PAYMENTS FOR THE INDIRECT COSTS OF PATIENT CARE
       THAT ARE RELATED TO HOSPITALS' TEACHING PROGRAMS

                                   Annual Savings              Cumulative
                                (Millions of dollars            Five-Year
Savings from         -----------------------------------------   Savings
CBO Baseline         1994     1995      1996     1997     1998
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                  Reduce the Teaching Adjustment to 6 Percent

Outlays               580      720       780      840      970       3,900

                  Reduce the Teaching Adjustment to 3 Percent

Outlays              1,650    2,000     2,200    2,350    2,750     10,950
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