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Medicaid Tightens Oversight of Autism Therapy Providers

Wilson and 16 other attorneys general say states need authority to pursue beneficiary fraud as Medicaid improper payments hit $37.39 billion.

  • On Tuesday, the Centers for Medicare and Medicaid Services released a 173-page toolkit urging states to tighten oversight of autism therapy providers to curb fraud and ensure clinically appropriate care.
  • Medicaid spending on applied behavior analysis surged 421% between 2021 and 2025, rising from roughly $1.94 billion to about $10.1 billion, far outpacing the 67% increase in children receiving services.
  • The new guidelines advise states to require prior authorization for high therapy hours and better track clinic outcomes, following Medicaid officials' concerns that profit-oriented clinics prioritize billing over patient needs.
  • South Carolina Attorney General Alan Wilson led a coalition of 16 states urging Congress to pass the STOP Fraud in Medicaid Act, which would empower states to investigate and prosecute recipient fraud.
  • Because Medicaid administration varies by state, the toolkit's practical impact depends on individual state agency adoption; families retain appeal rights if services are reduced, and EPSDT obligations for children under 21 remain in force.
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AZ FREE NEWS - Your #1 Source for Arizona News & Politics! broke the news on Tuesday, August 4, 2026.
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