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New York’s Proposed Medicaid Cuts Raise Concerns for Autism Services

Posted 2 weeks ago      Author: 3 Pie Squared Marketing Team

New York’s Proposed Medicaid Cuts Raise Concerns for Autism Services

In February 2025, New York Governor Kathy Hochul proposed a $252 billion state budget that includes a plan to reduce Medicaid funding for Applied Behavior Analysis (ABA) therapy. While the proposal is intended to save $30 million over two years, it has sparked widespread concern among parents, advocates, and providers who say the cuts could jeopardize access to vital autism services for low-income families.

What the Proposal Includes

The budget outlines reductions in Medicaid spending of $9.6 million in fiscal year 2025–2026 and $19 million in 2026–2027. One major change would be cutting reimbursement rates for Registered Behavior Technicians (RBTs) from $70 per hour to just $38 per hour. If approved, these would be among the lowest rates in the country, potentially discouraging qualified professionals from staying in the field.

Who Will Be Affected

Families who rely on Medicaid to access ABA services may experience delays, reduced availability, or even a complete loss of services. Parents like Shannan Thenstead from the Bronx fear their children could lose life-changing support. Her son, Sebastian, has made significant progress with ABA therapy—progress that could be stalled or reversed if services are no longer available.

Providers also worry about the financial impact. Companies such as Applied ABC warn that these rates could make it impossible to retain staff or continue offering services, particularly in under-resourced communities. This could result in widespread staff shortages and clinic closures across the state.

Pushback from Advocates and Lawmakers

Advocacy groups and lawmakers have voiced strong opposition to the proposed cuts. The New York State Association for Behavior Analysis (NYSABA) argues that the cuts would roll back years of progress and create an inequitable system where only families who can afford private care would access ABA therapy.

U.S. Representative Ritchie Torres criticized the proposal as making ABA a “privilege” rather than a right. He warned that these cuts would drive Registered Behavior Technicians out of the profession and severely limit care for thousands of children who depend on Medicaid-funded services.

What the Governor’s Office Says

The Hochul administration contends that Medicaid spending has grown by 40% in just three years and that these cuts are necessary to maintain fiscal discipline. Officials argue that slowing this growth now will help prevent a deeper financial crisis in the future, with the state facing a projected $5 billion deficit in the next two years.

What’s Next

As the legislature continues to review the proposed budget, families and providers are urging lawmakers to reject these cuts and preserve funding for ABA therapy. The debate underscores a larger question: how can the state balance fiscal responsibility while protecting access to essential services for vulnerable populations?


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