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  1. ENT-39 ELIMINATE THE DISPROPORTIONATE SHARE ADJUSTMENT FOR HOSPITALS
  2.        IN MEDICARE'S PROSPECTIVE PAYMENT SYSTEM
  3.  
  4.                                    Annual Savings              Cumulative
  5.                                 (Millions of dollars            Five-Year
  6. Savings from          -----------------------------------------   Savings
  7. CBO Baseline          1994     1995      1996     1997     1998
  8. ---------------------------------------------------------------------------
  9.  
  10.           Immediately Eliminate the Disproportionate Share Adjustment
  11.  
  12. Outlays              2,350    2,900     3,150    3,350    3,600     15,300
  13.  
  14.            Gradually Eliminate the Disproportionate Share Adjustment
  15.  
  16. Outlays                470    1,100     1,800    2,600    3,500      9,450
  17.  --------------------------------------------------------------------------
  18.  
  19. NOTE:The disproportionate share adjustment is based on an index that is the
  20.      sum of two ratios:  the proportion of all Medicare patient days that
  21.      are attributable to Medicare patients receiving benefits from the
  22.      means-tested Supplemental Security Income program, and the proportion
  23.      of all patient days for which Medicaid is the primary payer.
  24.  
  25. ---------------------------------------------------------------------------
  26.