State Medicaid sued after autistic children lose therapy coverage
The claim stems from decisions by two major health insurers who contract with the Arizona Health Care Cost Containment System to terminate their own contracts with two special programs for autistic children. That, according to the lawsuit, has resulted in these children being in danger of regressing and returning to behavior patterns from before they started getting treatment.
What makes the state's Medicaid program liable, according to attorney
All that stems from a dispute between the insurers and
The problem, Nelson said, is that the insurers-paid by AHCCCS to provide this coverage-have not made other comparable treatment readily available, with long waiting lists.
Nelson said AHCCCS own rules mandate continued provision of behavioral health services "according to the needs of the person"-but no longer than 45 day after the need is identified.
'Many providers' waitlists far exceed those limits," he told the court.
All that, he said, has left the children without the care their parents say they need.
"Continuity of care is critical for children with autism, who often struggle to cope with even minor changes in established routines," Nelson wrote. And the best treatment is "applied behavior analysis" which helps children with autism spectrum disorder develop communications, social, and learning skills.
"So, loss of access to ABA therapy or forcing children to change ABA providers is certain to cause regression and irreparable harm," he continued. "Moreover, inevitable gaps in coverage as families attempt to find new providers amid an acute statewide shortage will be just as or even more damaging." And even if there are alternatives, several of the parents who sued said their children do not handle change well and fear that starting over with someone else will lead to their youngsters regressing in the progress they have made.
Now Nelson is asking
A representative of AHCCCS said it does not comment on litigation.
The lawsuit has several examples of the risks to children if their care is interrupted.
One child, identified only as 3-year-old E.L., was diagnosed with autism spectrum disorder at 18 months and began receiving ABA therapy covered by Medicaid through
According to an affidavit from his mother, he had "frequent tantrums" because he could not communicate his needs. He also was physically aggressive with family members and would run away.
After therapy, his mother said, E.L. has "learned methods of communicating, like sign language and pointing, and he's working on saying some individual words to communicate his needs." She also said his tantrums are "shorter and less frequent" and he has stopped running away.
The concern, said the mother, is that the child does not do well with changes. She said he is "at an increased risk of returning to prior behaviors and institutionalization without therapy or with reduced hours of therapy." There are similar stories from other parents who filed the lawsuit, including one from a mother who lives in San Tan who said that the alternative provided-if she can get in-is 40 minutes from her home.
What has happened, Nelson said, is more than just inconvenient.
He said that the failure of AHCCCS to ensure continued care violates the federal Medicaid Act and its requirements that the state ensure access to care for eligible patients. Nelson also contends the actions-or inactions-of the agency violate other state and federal laws protecting the rights of the disable.


AM Best Comments on Credit Ratings of Cavello Bay Reinsurance Limited Following the Acquisition of AF Group by Enstar Group Limited
FEMA Releases Preliminary Flood Maps for Cochise County Communities
Advisor News
- Trump targets ‘retirement gap’ with new executive order
- Younger investors are engaged and advisors must adapt
- Plugging the hidden budget leaks of retirement
- Hagens Berman: Retired First Responders Sue Washington State over Rights to $3.3B Pension Funds Threatened by Lawmakers
- Financially support your adult children without risking your future
More Advisor NewsAnnuity News
- A new opportunity for advisors: Younger indexed annuity buyers
- Most employers support embedding guaranteed lifetime income options into DC Plans
- InspereX Partners with AuguStar Retirement for Strategic Expansion into Annuity Market
- FACC and DOL enter stipulation to dismiss 2020 guidance lawsuit
- Zinnia’s Zahara policy admin system adds FIA chassis to product library
More Annuity NewsHealth/Employee Benefits News
- Rob Sand unveils water quality, public health plan
- CoL employees can choose from 8 types of insurance coverage
- Problems possibly persist with privatized OK managed care
- Pending cuts to Georgia Medicaid payments could affect children who need therapy
- Reports from University of Washington Provide New Insights into Managed Care (Self-Reported Stress, Hair Cortisol and Untreated Caries in Low-Income Adolescents in the United States): Managed Care
More Health/Employee Benefits NewsLife Insurance News
- Convertible market dynamics and the portfolio implications for insurers
- Finalists announced for Lincoln's 2026 Best Places to Work
- Investors Heritage Promotes Anna Reynolds to Senior Vice President and General Counsel
- AM Best Affirms Credit Ratings of Old Republic International Corporation’s Subsidiaries
- Government seeks dismissal of Dean Vagnozzi’s lawsuit against SEC
More Life Insurance News