Arizona Families Rally Against Medicaid Contract Cancellations Affecting Autism Therapy
At the Arizona Capitol, parents gathered to voice their concerns over the termination of contracts between the state’s Medicaid program and two major therapy providers. These changes could significantly impact the availability of applied behavior analysis (ABA) therapy for children with autism.
ABA stands as a cornerstone for many families dealing with autism, offering a path to improved communication and cognitive skills. “What does ABA mean to our families? In the autism world, it means hope, security, stability and a bright future for our kids. We see the progress firsthand,” shared parent Renee Bradley.
The protest was triggered by decisions made by Mercy Care, Arizona Complete Health, and UnitedHealthcare Community Plan to sever ties with Centria Autism and Action Behavior Centers, which specialize in ABA services.
A lawsuit filed last year warns that these decisions could jeopardize therapy access for up to 1,000 children, potentially stalling their developmental progress.
Kim Powell, a parent, emphasized the therapy’s impact, stating that her once non-verbal son now communicates effectively. “Today at 4 years old, he talks more than we ever dreamed possible – hearing his voice, hearing him ask questions, expressing his needs and quizzing us on math problems,” Powell said.
Financial Implications and Rising Costs
Governor Katie Hobbs, addressing the broader financial landscape, proposed a budget this January that included almost $300 million in additional funding for the state’s AHCCCS division, which aids residents with disabilities. This budget increase mirrors a national pattern, with a significant rise in autism diagnoses since 2006.
In line with this trend, KJZZ highlighted in February that costs for providing ABA therapy are escalating. The AHCCCS’s expenditure on ABA services jumped to $371 million in 2025 from the previous year’s $260 million.
Mercy Care had previously terminated its contract with Centria following disagreements over reimbursement rates, which Centria deemed unsustainable.
While Mercy Care cited fiscal responsibility as the reason for their decisions, they assured that ABA services remain available through their existing network of over 70 providers. “ABA services have been getting nationwide attention in recent years. ABA is an AHCCCS covered benefit and there have been no changes to Mercy Care’s coverage of medically necessary ABA services,” a statement from the insurer noted.
Despite these assurances, families report ongoing challenges. Tiana Brandon, a parent, expressed frustration over the lack of communication following the contract cancellations, saying, “I’ve not been contacted by AHCCCS or Mercy Care this entire time via e-mail, via phone call, via mail correspondence.”
The lawsuit acknowledges efforts by Mercy Care and associated state agencies to transition Centria’s clients to other providers. However, it warns that this task is daunting due to the existing shortage of ABA providers in Arizona.
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