Medicaid Programs Reduce Popular Autism Therapy Coverage

Following drastic changes in Medicaid programs, families reliant on autism therapies face uncertain futures. These changes specifically target applied behavior analysis (ABA) therapy, a crucial treatment for many children diagnosed with autism.
Medicaid Cuts Impacting Autism Therapy
Children like Aubreigh Osborne, a 3-year-old diagnosed with autism, are experiencing direct effects of these cuts. Aubreigh began ABA therapy to address her challenges with social interactions and emotional outbursts. Her mother, Gaile Osborne, noticed remarkable progress since starting the therapy.
State Initiatives Reducing Therapy Hours
In October, North Carolina halved Aubreigh’s weekly therapy from 30 hours to 15, reflecting broader trends across the country. Similar measures are reported in Nebraska, Colorado, and Indiana, where state officials seek to manage Medicaid spending.
- North Carolina aims to cut payments to ABA providers by 10%.
- Nebraska has implemented reductions nearing 50% for various providers.
The financial burden on state Medicaid programs has skyrocketed due to increased diagnoses and treatments for autism. For example, spending in North Carolina increased from $122 million in fiscal year 2022 to a projected $639 million by fiscal 2026, marking a 423% rise. Nebraska reported an astounding 1,700% increase in expenses for autism therapies.
Legal Challenges from Families
Families are pushing back against these cuts. In North Carolina, a group representing 21 children with autism has filed a lawsuit against the state. Similar actions are underway in Colorado and Nebraska, where families fear losing access to vital treatments.
- North Carolina’s lawsuit challenges a 10% payment cut to providers.
- In Colorado, families are opposing new requirements for prior authorization.
The Financial Toll on Families
Parents like Cathy Martinez from Nebraska have faced severe financial strains while trying to provide necessary treatments for their children. Her family went bankrupt to secure ABA therapy for her son, who was diagnosed with autism. Martinez successfully advocated for mandated insurance coverage but now worries about the implications of the recent Medicaid cuts on access.
State Responses
In response to public outcry, North Carolina’s Medicaid policies are now under review. Governor Josh Stein recently announced the cancellation of the previous cuts. However, the situation remains precarious, as ongoing budget constraints continue to threaten Medicaid funding.
Despite the uncertainty, Gaile Osborne remains hopeful. After tirelessly advocating for Aubreigh’s ABA services, she has successfully restored her daughter’s therapy hours. “It’s not perfect,” she reflects, but the improvement in Aubreigh’s daily life has been significant.
As families navigate these uncertain waters, the fight for accessible autism therapy remains essential amid growing budgetary pressures.



