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Indiana Is Back in the News: What ABA Providers Need to Know About the State’s Latest Push for Cost Controls
Indiana is back in the news—and once again, about ABA therapy.
According to a May 2025 report from the Indiana Capital Chronicle, the state has launched a 21-member working group to explore new cost-control strategies for Applied Behavior Analysis (ABA) services under Medicaid. The group is expected to deliver its recommendations by the end of the year.
This isn’t the first time Indiana has taken a hard look at ABA therapy spending. Earlier in 2025, it implemented a three-year cap on intensive services and introduced a tiered system based on autism severity levels. But this new panel signals that even more changes are likely on the way.
Why Indiana’s Move Should Get Your Attention
It’s not just the formation of the panel that’s noteworthy—it’s the numbers behind it. Medicaid spending on ABA in Indiana grew from just $14 million in 2017 to a staggering $639 million in 2023 (KFF, 2024).
This kind of increase is going to raise flags. In fact, a recent audit found that Indiana's Family and Social Services Administration (FSSA) may have paid out over $133 million in improper or questionable ABA claims (Indiana Capital Chronicle, Jan 2025).
States like Indiana are now asking: How do we continue to fund needed services while keeping the system sustainable?
This Isn’t Just Indiana’s Problem
Indiana may be making the headlines, but it’s not alone. In early 2024, Massachusetts passed legislation requiring all ABA providers to be accredited by 2028, citing quality assurance and cost efficiency (SkyCare ABA, 2024).
Other states are watching closely. If your practice is based in Florida, Texas, California, or anywhere with strong Medicaid coverage, these conversations are likely coming your way too.
What Providers Should Do Right Now
Here are a few steps you can take to get ahead of changes like these:
1. Review Clinical Rationale for Hours
Make sure your team can explain, with data, why each client is receiving the number of hours they are. Outcomes-based justification is going to matter more than ever.
2. Tighten Supervision Systems
If service caps tighten, you’ll need strong supervision protocols to maintain quality. Build in systems for regular review, fidelity checks, and flexible support.
3. Get Your Data Ready
Legislators and payers want numbers. How many goals are being met? What’s the staff-to-client ratio? Are clients transitioning or making progress? If you’re not tracking it, you can’t prove it.
4. Communicate Proactively
Uncertainty breeds fear. Talk with your team and the families you serve. Let them know you’re watching what’s happening and preparing to protect continuity of care.
Accreditation Might Be Next
One possible outcome of Indiana’s review? A push for statewide accreditation as a means to reduce waste and ensure consistency. Accreditation isn’t just a checkbox—it could become the baseline for access to funding.
If your ABA practice isn’t accredited, or you’re unsure how to get started, it’s a good time to explore your options. If you’d like support with that, feel free to reach out: 👉 https://3piesquared.com/stephen-booking-page
What’s Really at Stake
This isn’t just about money. It’s about whether the ABA field is seen as trustworthy, effective, and accountable. If we want to expand access to services, we need to operate with clarity, ethics, and a commitment to quality—and that starts with providers.
The truth is, the practices that survive and thrive in this new environment will be the ones that lead with intention. They’ll get clear on clinical models, tighten systems, and show up to conversations with real data and solutions.
Final Thoughts
Indiana may finalize its panel recommendations by the end of this year. But if you’re an ABA business leader, now is the time to act—not react. Build systems. Train your team. Audit your model. And start thinking like someone who’s going to be at the table when change happens.
Because the future of ABA doesn’t belong to the biggest providers. It belongs to the ones who are ready.
Sources:
- Indiana’s Updated Medicaid Policy for ABA Therapy: What You Need to Know
- Indiana panel to consider ABA therapy cost controls – Indiana Capital Chronicle
- ABA and the Medicaid Budget – Indiana Capital Chronicle
- Medicaid Enrollment & Spending Growth – KFF
- Massachusetts Implements ABA Accreditation Requirement – SkyCare ABA