Gov. Mike Braun Signs Order to Control ABA Therapy Costs

INDIANAPOLIS, Ind. — Indiana Governor Mike Braun signed an executive order aimed at controlling the skyrocketing costs of Applied Behavior Analysis (ABA) therapy while ensuring the quality of care remains intact. The order was enacted on February 19, 2025, shortly after propositions in the statehouse sought limits on ABA therapy services.

ABA therapy is widely recognized as one of the most effective treatments for individuals with autism, offering critical support to both children and adults. As costs have surged, the Indiana Medicaid program has seen expenditures rise from $14.4 million in 2017 to an estimated $120 million in 2019, and projections suggest spending will reach $645 million in 2026 for approximately 8,000 children, equating to more than $80,000 per child.

“When the price our state pays for one service is soaring, something is clearly wrong and needs to be addressed immediately,” said Gov. Braun in a press release. He noted that an audit by the U.S. Office of the Inspector General revealed at least $56.5 million in improper Medicaid payments for ABA therapy. These improper payments were attributed to inadequate evaluations, documentation, and provider credentialing.

The governor’s executive order establishes a working group comprising parents, legislators, subject matter experts, physicians, and ABA therapy providers. This group is tasked with finding actionable recommendations to reduce costs without sacrificing care quality. The working group will evaluate various solutions and present three viable options to Gov. Braun.

“We’re taking decisive action to contain these massive cost increases while maintaining quality of care for the Hoosiers that rely on these treatments,” Braun added.

The ongoing financial strains on Indiana’s Medicaid program have prompted scrutiny and demand for reform. Braun emphasized the importance of addressing the budget shortfall and preventing further financial burdens on future generations.

“Considering the budget’s shortfalls, we have to do all we can to control rising costs, especially figuring out any fraud while maintaining quality of care,” he said.

In response to the executive order, local organizations have expressed their support for the initiative. A representative from a non-profit serving children with intellectual and developmental disabilities commented that they are eager to engage in discussions to ensure that quality care remains a priority.

As the working group commences its evaluations, stakeholders across Indiana remain hopeful for sustainable solutions that address the urgent needs for ABA services amidst rising costs.