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LFC: Medicaid managed‑care behavioral health costs rose sharply; ABA spending surged as provider network grew
Summary
An LFC evaluation reported behavioral‑health managed‑care spending rose roughly 47% between 2023 and 2025 while utilization rose about 22%; applied behavioral analysis (ABA) services for autism showed the largest growth (roughly 80–88%), and staff noted limits in linking datasets to health outcomes.
Matthew Goodlaw, an LFC program evaluator, told the committee that LFC's descriptive analysis of Medicaid managed‑care behavioral health between 2023 and 2025 shows rising costs and use even as enrollment declined after the pandemic unwinding. Key findings presented to the committee:
- Behavioral‑health claim spending to MCOs grew by about 47% (approximately a $230 million increase) between 2023 and 2025, according to LFC estimates.
- Utilization (units of service) increased roughly 22% (from about 8.4 million units to 10.2 million units in calendar year 2025).
- The largest area of…
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