Indiana Working Group Recommends Capping Medicaid ABA Services & Setting Sustainable Rates

Between 2017 and 2023, Medicaid spending on applied behavior analysis (ABA) therapy for Indiana children diagnosed with autism spectrum disorder (ASD) increased from $21 million to $611 million. That spurred Indiana Governor Mike Braun to convene a working group to ensure ABA therapy remains sustainable for the Medicaid program and of high quality.

After discussing the issue for most of 2025, the group recently revealed these five key recommendations:

Implement service allocation caps that encourage medically necessary use of ABA therapy. Support transitions and ensure caregiver involvement as children progress from high-intensity therapy to more targeted ABA or other . . .