The Arc of Indiana appreciates the Family and Social Services Administration’s (FSSA) January 30 announcement that the planned 10% Medicaid rate cut for Applied Behavior Analysis (ABA) therapy will be reduced to 6%.
Families and advocates had raised concerns that a 10% cut would significantly disrupt access to ABA services for their children. The 6% cut is scheduled to take effect on April 1, 2026. However, FSSA Secretary Mitch Roob has stated that an additional 4% cut could be needed in 2027 if other recommendations made by the ABA Working Group, designed to reduce costs, do not materialize.
“We appreciate that FSSA reconsidered a 10% cut to ABA rates,” said Kim Dodson, CEO of The Arc of Indiana. “While any reduction presents challenges, a 6% cut provides greater stability for providers and the families who rely on these critical services.”
Dodson also emphasized the role of family and legislative advocacy in the decision. “We are grateful to the many families who contacted their legislators and the governor’s office to explain how a 10% cut would have affected their children’s services,” she said.
The Arc of Indiana also thanked Rep. Robb Greene, Rep. Becky Cash, and Rep. Lori Goss-Reaves for their leadership. “Their steadfast advocacy on this issue made a meaningful difference for families across Indiana,” Dodson said.