Congressman Charles B. Rangel (D-NY) and Senator Daniel Patrick Moynihan (D-NY) have introduced legislation to protect the nation's teaching hospitals from further cuts scheduled to take place under the Balanced Budget Act of 1997 (BBA). Specifically, the Rangel/Moynihan legislation, entitled the Teaching Hospital Preservation Act of 2000 (H.R.4239/S.2394), would protect teaching hospitals from another $2.1 billion in Medicare cuts over the next five years by maintaining the indirect medical education (IME) adjustment to Medicare inpatient payment rates at 6.5% for every 10% increase in the ratio of interns and residents to beds. Under current law, the IME adjustment is scheduled to be reduced to 6.25% on October 1, 2000, and to 5.5% on October 1, 2001, thus subjecting teaching hospitals in New York State to over $550 million in additional Medicare cuts over the next five years. While President Clinton proposed a first step in his BBA relief package by proposing to eliminate the first of the two IME cuts, he has not yet come out in support of the full Moynihan/Rangel bill. Enactment of this legislation is one of GNYHA's top legislative priorities for 2000, along with legislation authored by Congresswoman Nita Lowey and Congressman Jack Quinn that would provide full inflation, or "market basket," updates for hospitals in 2000 and 2001 (H.R.3580). Senator Moynihan has gained the cosponsorship of 32 of his Senate colleagues for S.2394, including his fellow New York Senator, Charles E. Schumer. Congressman Rangel has gained the cosponsorship of 63 of his colleagues, with 38 signing on as cosponsors in the month of June alone. GNYHA is grateful to the following New York members of Congress for joining with Congressman Rangel as cosponsors of H.R.4239: Congressman Joseph Crowley, Congressman Eliot Engel, Congressman Michael Forbes, Congressman Benjamin Gilman, Congressman Maurice Hinchey, Congressman Peter King, Congresswoman Nita Lowey, Congresswoman Carolyn Maloney, Congressman Mike McNulty, Congressman Gregory Meeks, Congressman Jerrold Nadler, Congressman Major Owens, Congresswoman Louise Slaughter, Congressman Edolphus Towns, Congresswoman Nydia Velazquez, and Congressman Anthony Weiner. GNYHA is urging all New York members of Congress to sign onto H.R.4239 without delay.