As States Crack Down, Autism Therapy Providers Target Lawmakers — and Schools
For most of its existence, the autism therapy known as applied behavior analysis, or ABA, has relied on armies of parents — eager to share heartrending stories of the transformation it could bring about in their children's lives — to lobby state lawmakers to require insurance coverage and other benefits.
The coverage mandates these parents helped secure have driven hundreds- and even thousands-fold increases in Medicaid spending on ABA — an unproven, even harmful, behavior modification system that uses rewards and punishments to try to eliminate certain behaviors.
Over the last decade, the ready flow of cash has attracted private equity, a type of investment that purchases large shares of companies that are not publicly traded. Through cost cutting and other restructuring methods, these short-term investors try to boost revenue before selling the businesses for a profit. With scant state or federal oversight, they have also acquired nursing homes, facilities for people with intellectual and developmental disabilities, medical equipment providers and other healthcare industries that rely on taxpayer dollars to profit.
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Now, states — which put few regulatory guardrails on the ABA industry, on private equity's role in healthcare in general or on Medicaid reimbursement — are cracking down. Even before a series of damning federal audits commissioned by the Biden administration were released in recent months, lawmakers and health officials have proposed capping the amount of ABA an individual child can receive and how much providers can bill, as well as imposing standards on clinics and therapists.
As states have revisited Medicaid reimbursement rates and other policies that impact providers' financial bottom lines, two types of ABA-related debates have played out in statehouses. One involves the ABA industry's entrance into state-level political spending; the other, efforts by providers and caregivers to require public schools to allow the therapist of a family's choosing to accompany their student to class.
The start of statehouse spending
Individual state legislative races are relatively cheap to influence. While parents have long packed hearing rooms to testify against threatened cuts to autism services, in recent years some of the industry's largest, private equity-owned ABA providers have begun making campaign donations to candidates for state-level office who could sway legislation on ABA oversight, Medicaid reimbursement rates, whether private autism therapists should be allowed in schools and other laws that impact providers' profits.
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Lobbying and campaign finance reporting requirements vary widely from state to state. Using records compiled by the political spending watchdog group Open Secrets, The 74 was able to identify instances when ABA lobbyists donated to state-level campaigns around the country at consequential moments, to benefit the companies the lobbyists represented.
In 2022,
Campaign contributions made that year by two of ABA's largest private equity-owned concerns,
Hopebridge Autism Therapy gave a total of
It was a small expense for two of the country's largest autism therapy companies, which between 2019 and 2024 brought in almost
The largest company by Medicaid revenue,
In 2024 in
As governor, Braun created a state applied behavior analysis work group to consider ways to rein in costs while continuing to serve autistic children. The group's membership is dominated by ABA practitioners.
In
On the table: A 2021 measure to expand the state's private insurance autism therapy mandate until 2030 and a 2025 proposal to extend
The bill to expand the disability categories for which ABA practitioners can be reimbursed faced significant pushback. Testimony submitted to lawmakers included an analysis of research on the therapy's effectiveness for conditions other than autism, such as Down syndrome, cerebral palsy and epilepsy. It concluded the evidence is thin. The measure is still pending in the state House.
Facing Medicaid rate cuts, Utah Behavior Services (now known as Bridgeway Integrated Healthcare Services) — with Medicaid revenue of some
Must schools allow private ABA in classrooms?
Special education law requires schools to provide "medically necessary" services to children whose ability to attend school and learn depends on them. For the most part, school districts can pass these costs along to Medicaid or another public healthcare plan, or to a family's private insurer.
Commonly cited examples are children who need a nurse to manage their airway or feeding tube, or have a condition that requires physical therapy. Historically, ABA has not been recognized as a medically necessary service. Schools typically try to meet students' behavioral and communications needs in other ways.
In 2022, two
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How Parents in
They would be liable for the in-school conduct of a technician they don't employ, several of those commenting said. And, most practically problematic, schools would be legally responsible for figuring out how to make up the academic instruction that students would miss while engaging in therapy during the school day.
This investigation was produced with support from the Education Writers Association Reporting Fellowship program.
Distributed by Newsbank, inc.


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