Nation IN BRIEF : WASHINGTON, D.C. : Tight Growth Urged in Health Programs

Presaging a legislative fight over two major entitlement programs, Senate Finance Chairman Bob Packwood (R-Ore.) projected that federal spending could be reduced by as much as $400 billion over seven years by halving the growth of Medicare and Medicaid. Speaking at a committee hearing, Packwood insisted that reducing the growth rate of the two programs from 10% to 5% is necessary to achieve a balanced federal budget without raising taxes. But Health and Human Services Secretary Donna Shalala said that the cuts would force the government to sharply reduce payments to hospitals, physicians and managed-care plans and require senior citizens to pay significantly more for their medical care.