AARP argues for efficient drug spending over Medicaid funding cuts

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A major consumers group for seniors is urging Congress not to slash $10 billion from Medicaid, arguing that seniors will face more difficulty qualifying for nursing home care if the funds are cut.

AARP is recommending, instead, that Congress save Medicaid funds through more efficient prescription drug spending. That includes more accurate payments to pharmacies, greater rebates from manufacturers and wider use of multi-state purchasing pools.

The organization expressed concern over Congress's tightening of tactics seniors use to qualify for nursing home care.

"While some loopholes can be closed, those individuals who simply helped family members or contributed to charities, or made other similar decisions with no intention of gaming the system, should not later be denied needed care," AARP said in a letter to the House Energy and Commerce Committee.