Indiana's Medicaid Cuts Threaten Access to Essential Autism Therapy: What Families Need to Know

Indiana’s Medicaid cuts to ABA therapy may limit access for autistic children. Learn what’s changing, how it impacts families, and what support is available.

June 9, 2025

In early 2025, Indiana's Medicaid program announced significant reductions in coverage for Applied Behavior Analysis (ABA) therapy, a cornerstone treatment for children with autism. These changes have sparked widespread concern among families, providers, and advocates who fear that the new policies could severely limit access to vital services.AP News+1AP News+1

Understanding the Proposed Changes

Starting April 1, 2025, the Indiana Family and Social Services Administration (FSSA) plans to cap ABA therapy coverage to between 30 and 38 hours per week, depending on an individual's diagnosis. Additionally, a lifetime limit of 36 months will be imposed on coverage, with some exceptions. Initially, these caps were set to be retroactive, but following significant pushback, the FSSA revised the policy to apply the cap prospectively, allowing current recipients to continue receiving services through at least April 1, 2028 .WISH-TV+1WISH-TV+1WISH-TV+1WISH-TV+1

The Impact on Families

For many families, ABA therapy is more than just a treatment—it's a lifeline. Parents like Jana Tiede, whose six-year-old daughter Ryah has autism, have expressed deep concerns about the proposed changes. Tiede emphasized that ABA therapy has been instrumental in helping her daughter develop social connections and communication skills. She argued that therapy coverage should be based on individual need rather than an arbitrary time limit .WISH-TV

Other parents have voiced similar fears, noting that the proposed reimbursement rates are significantly lower than current costs. For instance, the FSSA proposed an hourly reimbursement rate of $55.16 for services provided by a Registered Behavioral Technician (RBT), which is nearly 45% below current rates and approximately 20% below the cost of providing services .indianaact4families.com

Provider Concerns

ABA therapy centers across Indiana are also expressing concerns about the sustainability of their operations under the new reimbursement rates. Miles Hodge, owner of Shine Pediatric Therapy in Indianapolis, warned that the proposed rates are insufficient to cover operating costs, potentially leading to staff turnover and reduced access to services .AP News+1AP News+1

Similarly, Allyson Wehlage, Chief Compliance Officer at Behavior Associates of Indiana, highlighted that the three-year cap could set clients and families up for failure, as the duration of therapy needed varies significantly among individuals .Behavior Associates of Indiana

Advocacy and Legal Action

In response to these proposed changes, families and advocacy groups have mobilized to protect access to ABA therapy. The Autism Society of Indiana organized an advocacy day at the statehouse, encouraging individuals to share their stories with lawmakers . Additionally, some parents have taken legal action, filing lawsuits alleging that the cuts violate the Americans with Disabilities Act and federal Medicaid laws .WISH-TVAP News

A Path Forward: Ensuring Access to Quality Autism Services

As Indiana navigates these challenging policy changes, it's crucial to ensure that children with autism continue to have access to the services they need. Organizations like Astra ABA are committed to providing high-quality autism services in Indiana, offering personalized care that adapts to the unique needs of each child.

If you're a parent or caregiver seeking support or information about ABA therapy options in Indiana, Astra ABA is here to help. Contact us today to learn more about how we can assist your family during this challenging time.

It's essential that we continue to advocate for policies that prioritize the well-being and development of children with autism. By staying informed and engaged, we can work together to ensure that all children have the opportunity to thrive.

Ready to start your journey with ASTRA ABA?

Contact us today for a consultation and let us be a part of your child's path to success.

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