Arkansas families face rising pressure as Medicaid grapples with autism therapy costs

Families of children with autism in Arkansas are facing growing uncertainty as the state’s Medicaid program struggles to cover the high cost of applied behavior analysis (ABA) therapy, a key intervention that helps children improve social skills, communication, and behavior. Experts warn that looming federal Medicaid spending cuts could make access even harder for families in the Natural State.

ABA therapy, ranging from 10 to 40 hours per week across home, school, and clinical settings, is expensive to provide. While federal rules required states to cover comprehensive autism services in 2014, all 50 states—including Arkansas—now include ABA coverage. Rising autism diagnoses have further increased demand, straining state budgets.

Nationally, states like Indiana and Nebraska have already faced challenges controlling costs. Indiana Medicaid spending on ABA grew from $21 million in 2017 to $611 million in 2023, prompting rate cuts and oversight reforms. Nebraska recently slashed reimbursement rates, including a 48% reduction for direct therapy. Providers warn such cuts make it difficult to maintain staffing and quality, especially in rural areas…

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