Indiana’s Medicaid ABA Therapy Limits: What Families Need to Know Now

Families across Indiana are grappling with anxiety, confusion, and concern over the state's new plan to cap Medicaid-funded Applied Behavior Analysis (ABA) therapy. As of April 1, 2025, children receiving services under Indiana Medicaid will face a three-year limit on ABA coverage, regardless of how long they’ve already been in therapy. This policy shift could significantly alter the lives of thousands of Hoosier children with autism—and their families.

While the state cites soaring costs (projected to hit $645 million by 2026) and concerns over improper billing practices as reasons for the change, many parents and providers warn that the long-term consequences for children could be devastating.

ABA Therapy: More Than Just a Treatment

ABA therapy isn’t a one-size-fits-all solution—or a temporary intervention. It's a lifeline for individuals with autism, helping them build essential life skills, from communication and social interaction to self-care routines. For many, especially those with more significant needs, progress is gradual, layered, and dependent on consistency.

Take Olivia, a 22-year-old Indiana resident who has benefited from 40 hours a week of at-home ABA therapy for over a decade. Her father, Rob Wilson, credits the therapy with helping her become more communicative and confident in public settings. Without it, he says, their entire family’s ability to function and enjoy life together would have remained limited.

But under the new Medicaid plan, children like Olivia may no longer have access to the hours they need—let alone the flexibility to continue therapy during different developmental stages of life.

Providers Sound the Alarm

Clinics and providers across the state are already feeling the pressure. Increased credentialing requirements, staff shortages, and capped therapy hours are creating bottlenecks in a field already stretched thin. Some centers, like Bloomington-based Teach and Play ABA, have even downsized in anticipation of lower funding and decreased service capacity.

Experts like owner Sara Shrivastav argue that the new restrictions ignore the evolving needs of individuals with autism. A child who thrives after three years of therapy at age five may still require intensive support as a teenager learning job skills or preparing for adulthood.

“To impose a three-year limit is kind of unrealistic,” Shrivastav said. “It’s not something like an antibiotic that they can just take and get rid of.”

The Real Risk: Lost Progress

Families aren’t just losing hours—they’re risking regression. Children who once had structured routines and support may struggle to maintain skills without consistent therapy. In many cases, progress that took years to achieve can unravel in months without reinforcement.

And for parents who choose to pay out-of-pocket to maintain consistency, the cost is daunting—up to $100,000 annually for full-time therapy.

What Families Can Do

Now more than ever, families must stay informed, speak out, and seek support. While legislation may not reverse overnight, advocating for your child’s individual needs—and accessing the right resources—can make a difference.

For those navigating these changes, working with experienced ABA therapists in Indiana is crucial. Astra ABA is committed to helping families continue their progress, offering personalized, evidence-based services tailored to each child’s unique path.

👉 Learn more about ABA therapists in Indiana and how Astra ABA can help you maintain continuity in your child’s care.

Don’t Wait—Support Is Available

Get in touch today to ensure your child doesn’t lose the support they’ve worked so hard to benefit from. Whether you're just starting your ABA journey or looking for alternatives after Medicaid changes, Astra ABA is here to help.

Your child’s progress is worth fighting for. With the right guidance and committed providers, brighter outcomes are still within reach.

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