Autism Learning Partners has closed its doors to new Medicaid and Child Health Plus patients in New York after the state’s Medicaid program cut reimbursement for applied behavior analysis (ABA) for the second time in a matter of months.
The Monrovia, California-based autism therapy provider said the cuts also led it to halt plans to open new locations in Albany and Yonkers. The new, lower rates place New York’s reimbursement for ABA near the lowest in the nation, despite being one of the most expensive states to live in.
“These were planned expansions based on demonstrated community need,” Rachael Schneider, Autism Learning Partners’ executive director for New York, said in a news release. “Halting them means fewer providers, fewer available treatment hours, and longer delays for families seeking care.”
Some data show New York has the sixth-highest cost-of-living index among American states and territories, with overall costs being 25% higher than the national index. The new Medicaid rates, which took effect April 1, apply to direct care. The new hourly rate is $57.80. Only Florida has a lower rate at $49.04.
Of the 523 children Autism Learning Partners treats, 480 have Medicaid coverage, the company said.
This is the second time in the last few months that Autism Learning Partners has limited its operations due to f Medicaid rate challenges. In December, the company announced that it would end all services in Texas, citing rate and process issues related to serving pediatric Medicaid members
“These rates do not align with the economic realities of providing care in New York,” said Dr. Mirella Petersen, DHA, MISM, Vice President of Payor Relations and Government Affairs. “When reimbursement falls below sustainable levels—even compared to lower-cost states—it directly impacts access for families.”
The halted treatment locations and other stymied investments in the state have put Autism Learning Partners’ plans to serve an additional 425 patients in 2025 on hold. The company presently serves patients in Buffalo, Albany, Rochester, Westchester County and the Bronx. It operates clinics in the latter two locations.
The clampdown on spending in ABA in New York does not parallel other state action in at least one key way. Many states have seen existing prices rocket up in the last few years. But in New York, ABA wasn’t a part of the Medicaid program until Jan. 1, 2023. A recent federal audit of Colorado found that spending on ABA increased 172% from 2019 to 2023. Colorado Medicaid has included ABA as a benefit since 2015.
More rate cuts could be coming to New York. In a legislative budget hearing earlier in the year, New York’s Medicaid Director Amir Bassiri said that the executive branch wanted to push down reimbursement for direct care closer to a 50% rate cut the state proposed last year. The state has not yet passed its budget for the coming year.
The existing cuts could further challenge the viability of the autism therapy market in New York. A survey by the Council of Autism Service Providers (CASP) and New York State Association for Behavior Analysis (NYSABA) found that over 70% of providers engaged with Medicaid would consider ending that engagement if the April 1 cut took effect.