Gov. Braun Signs Executive Order for Rising ABA Therapy Costs

Source: (Photo by Anna Moneymaker-Pool/Getty Images)

INDIANAPOLIS — Governor Mike Braun signed an executive order Wednesday to hold the rising costs for Applied Behavior Analysis (ABA) therapy, as well as making sure kids and young adults in Indiana are cared for.  

ABA therapy is known to help kids with autism improve their skills in life. It will benefit not only the kids themselves, but it will also benefit their families and friends.  

However, Indiana Medicaid payments on ABA grew from $14.4 million in 2017 to $120 million in 2019. Payments are expected to rise even more to $645 million by 2026 for 8,000 kids.  

A federal audit by the U.S. Office of the Inspector General reviewed Indiana’s ABA payments in 2019 and 2020 and made at least $56.5 million in improper Medicaid payments for ABA. This was mainly because of credential issues, missing evaluations, and poor documentation with risen costs.  

“Indiana’s $1 billion Medicaid budget shortfall last year means we need to take bold action to contain costs where they are clearly getting out of hand. When the price our state pays for one service is soaring from $14 million to $120 million in just two years, with over $39 million of improper payments identified in an independent audit, something is clearly wrong and needs to be addressed immediately,” Governor Mike Braun says. “We’re taking decisive action to contain these massive cost increases while maintaining quality of care for the Hoosiers that rely on these treatments.”