'It Is a Death Sentence of a Rate Cut': NY Medicaid Rolls Out 3rd ABA Rate Cut
By Chris Larson | September 23, 2026
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New York State Medicaid has significantly cut autism therapy reimbursement, leading providers to claim it effectively ends direct Applied Behavior Analysis (ABA) therapy for vulnerable populations covered by the safety-net program.
On September 17th, Medicaid announced a reduction in reimbursement for direct ABA therapy (coded as 97153) to $9.63 per billing unit, approximately $38.52 per hour, effective October 1st. This represents a 33% decrease from the current rate of $14.45 per unit.
This is the third rate cut in the past year, with previous cuts of 12.5% on October 1st, 2025, and April 1st, 2026. The cumulative reductions amount to a 50% decrease from rates at the beginning of 2025.
"The state knows this—it is impossible to provide services," stated David Parnes, Director of Business Development for Yellow Bus ABA. "This is one of the most expensive states to do business in... As the way ABA is run in New York, this is over for the children who have this kind of access to this kind of care."
The new rate places New York's Medicaid fee schedule at the lowest in the nation, according to MediRate data, previously held by West Virginia at $9.90. New York has the fifth-highest cost of living among states and Washington D.C.
A representative from the New York State Department of Health expressed: "The department recognizes the vital role Applied Behavior Analysis (ABA) providers play... We remain committed to ensuring access to high-quality, medically necessary care while managing Medicaid resources effectively."
However, the state's perspective considers direct therapy applicable to unlicensed staff, while several industry insiders argue that officials don't fully grasp the tiered model of care, where trained staff provide services under the planning and oversight of credentialed professionals.