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Thursday, March 19, 2026

ABA Funding Turmoil

The Politics of Autism includes an extensive discussion of insurance and Medicaid services for adults with intellectual and developmental disabilities. Cases of fraud and overbilling have led to a backlash.

Maya Goldman at Axios:

Where it stands: States and Medicaid managed care plans are scrutinizing more autism program spending and imposing cost controls.

  • Nebraska cut Medicaid payments for applied behavioral analysis by up to 80% last year. Indiana policymakers have proposed payment caps and reduced rates. New York is considering legislation that would make similar changes.
  • Medicaid managed care insurers like UnitedHealth Group have also limited coverage for applied behavioral analysis in some states.

Yes, but: The changes are causing significant upheaval for families that have been using applied behavioral analysis.

  • One mother in Arizona told Axios Phoenix that her 3-year-old son spent eight months on a waitlist for services before he got into a program last year.
  • Their insurance plan has since removed the provider from its network. The mother said she'll probably have to quit her job when her son loses coverage for his 40-hour-a-week therapy in May.
  • North Carolina reversed some cuts to Medicaid payment for applied behavioral analysis services last year after families of kids with autism sued the state.