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Autism Therapy in Colorado at Risk Due to Budget Cuts

Colorado residents Karmen Peak and her husband are dedicated parents who have seen firsthand the profound impact of early intervention and autism therapy on their two children. She credits access to these essential services with their remarkable progress, emphasizing how crucial continued support is for families like hers.

“What the staff members are doing at my kids’ center is life-changing for my kids,” Peak said.

However, last summer, their access to these vital resources was suddenly threatened. Determined to fight for her children’s well-being, Peak reached out to CBS Colorado after receiving devastating news that would change their lives.

“As parents we were just sent home a letter saying ABA services will be canceled,” she recalled in July of 2023.

The center that had been providing applied behavior analysis (ABA), a widely used autism therapy, informed families that it could no longer continue due to financial constraints. The culprit? The state’s Medicaid reimbursement rates, which had become unsustainable for providers.

This issue is not isolated. Advocates report that at least half a dozen similar organizations have either shut down or left Colorado altogether for the same reason. These closures have left many families scrambling to find alternative care options, often facing long waitlists and limited providers.

Recognizing the crisis, lawmakers on the Joint Budget Committee stepped in, approving an emergency 20% increase in Medicaid reimbursement rates to help stabilize the industry.

“I could cry just talking about it. We were just so excited to have a solution in place for these providers,” Peak said, expressing her immense relief at the temporary fix.

But that relief may be short-lived. The Colorado Department of Health Care Policy and Financing (HCPF) has proposed significant budget cuts, including reversing the rate increase. If approved, this would once again jeopardize access to ABA and other autism therapy services for countless children across the state.

The department issued the following statement regarding the proposed reductions:

“HCPF, the Governor’s office and the Office of State Planning and Budget (OSPB) values the work that PBT and ABA providers offer to Colorado children living with autism. This upcoming budget year is full of very difficult choices in an effort to present a balanced budget to the JBC and General Assembly. The decision to request a targeted rate reduction for pediatric behavioral therapies is one of those difficult decisions. Given the current budget situation, the rate increases implemented in FY24-25 were not sustainable. OSPB put forth targeted rate reductions for several Medicaid rate classes, including reducing PBT rates to the levels that were requested in FY24-25. These reductions do not remove the full increases some of these providers received in last year’s budget. Even with the proposed change, the rates would still be higher than FY 2023-24.”

The statement also noted that while the governor remains committed to increasing provider rates when possible, Colorado’s overall budget limitations make it difficult to sustain long-term Medicaid funding at higher levels.

“The Governor will continue to prioritize increasing provider rates to the extent possible given a limited state budget, as it has historically. Ultimately the JBC is going to need to make difficult choices and potentially deeper cuts to other areas of the budget like public safety and education if they choose to increase rates for Medicaid providers.”

For state lawmakers like Sen. Barbara Kirkmeyer, who serves on the Joint Budget Committee, maintaining the increased rates remains a top priority despite the tough fiscal outlook.

“As I have said several times this year those are still my priorities when it comes to funding the budget, so yes, there are other things that are going to have to take more dramatic cuts so that we can figure out how we do fund rates trying to get an increase, certainly no decreases which is what is in the governor’s request,” Kirkmeyer stated.

For families like the Peaks, the uncertainty surrounding the budget discussions is overwhelming. The prospect of losing access to ABA and autism therapy leaves them feeling anxious and unheard.

“I just want, you know, our governor and the state of Colorado to prioritize special needs children, because as a parent, I feel like my kids are overlooked. So, it’s disappointing.” Peak said.

As the debate continues, families, providers, and advocates are bracing for the potential impact of these decisions. For many, this is not just about numbers on a budget sheet—it’s about ensuring that children with autism have the resources they need to thrive.

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