ENT-39 ELIMINATE THE DISPROPORTIONATE SHARE ADJUSTMENT FOR HOSPITALS
       IN MEDICARE'S PROSPECTIVE PAYMENT SYSTEM

                                   Annual Savings              Cumulative
                                (Millions of dollars            Five-Year
Savings from          -----------------------------------------   Savings
CBO Baseline          1994     1995      1996     1997     1998
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          Immediately Eliminate the Disproportionate Share Adjustment

Outlays              2,350    2,900     3,150    3,350    3,600     15,300

           Gradually Eliminate the Disproportionate Share Adjustment

Outlays                470    1,100     1,800    2,600    3,500      9,450
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NOTE:The disproportionate share adjustment is based on an index that is the
     sum of two ratios:  the proportion of all Medicare patient days that
     are attributable to Medicare patients receiving benefits from the
     means-tested Supplemental Security Income program, and the proportion
     of all patient days for which Medicaid is the primary payer.

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