A $305 BILLION BITE OUT OF MEDICARE?

House Republicans are eyeing a politicallyrisky plan to cut $305 billion from Medicare, congressional aides said today. The GOP feels that the cuts are necessary if they are to fulfill their pledge to balance the federal budget within seven years. The strategy -- under discussion this week at closed-door meetings among Republican members of the House Budget Committee -- may include incentives to enroll in less costly, managed-care plans, as well as higher fees for upper income recipients. Senate Democratic Leader Tom Daschle, who expects to face down similar GOP proposals in the Senate, went on the attack: "We don't want to see Medicare cuts pay for (House-approved) tax cuts, and that's what may be in the offing here. We're not going to play that game."TIME Washington economics correspondent Suneel Ratancautions that the GOP numbers may change: "They know that they're touching the third rail of American politics."