Nebraska Legislature Evaluates Rising ABA Service Costs and Impact of Pandemic Regulations

September 05, 2025 | Business and Labor , Standing, Committees, Legislative, Nebraska


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Nebraska Legislature Evaluates Rising ABA Service Costs and Impact of Pandemic Regulations
The Nebraska Legislature's Health and Human Services Committee recently convened to discuss critical issues surrounding the state's reimbursement rates for Applied Behavior Analysis (ABA) services, a vital component of autism treatment. The meeting highlighted significant concerns about the rapid increase in utilization of these services, which have surged from 6.6% to 42% of the total mental health budget over the past few years.

Committee members expressed alarm over the rising costs associated with ABA services, which have not been adjusted in line with the increasing demand. The discussion revealed that while Nebraska's rates are currently above the national average, the state has seen a substantial influx of out-of-state providers taking advantage of these rates, particularly during the COVID-19 pandemic when telehealth regulations were relaxed. This influx has raised questions about the sustainability of funding and access to care for residents.

Senator Ballard raised concerns about the historical context of reimbursement rates, noting that they have not kept pace with the rising costs of care. The committee learned that while the state has increased funding for behavioral health services, ABA rates have been grouped with broader mental health services, complicating the tracking of expenditures and utilization.

The committee also discussed the implications of potential rate adjustments on access to care. Officials acknowledged that while they are committed to maintaining access, any significant cuts could lead to difficult decisions for providers, potentially impacting service availability. However, data from other states indicated that reductions in rates did not necessarily correlate with decreased access to care.

As the committee continues to navigate these challenges, they are focused on ensuring that Nebraska residents receive the necessary support for autism treatment while balancing the financial sustainability of the state's mental health services. The discussions underscore the importance of ongoing evaluation and adjustment of policies to meet the evolving needs of the community.

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