North Carolina Medicaid Contracts with Cortica to Address Exploding ABA Therapy Costs and Improve Care Quality
Alliance Health, North Carolina's public managed care organization for Medicaid, has partnered with Cortica to provide autism treatment in the Raleigh and Charlotte areas. This collaboration aims to curb the rapidly increasing costs of Applied Behavior Analysis (ABA) therapy, which has seen a 347% rise in spending from $121.7 million in fiscal 2022 to $544.4 million in fiscal 2025. The number of beneficiaries receiving ABA therapy also increased significantly, from 3,844 to 13,447. Alliance Health's CEO, Rob Robinson, stated that the organization is committed to innovative approaches to services and is not solely relying on fraud, waste, and abuse prevention to address spending concerns. Cortica's model integrates ABA therapy within physician-led medical care, offering a more comprehensive approach that includes medical care, developmental therapies, and family support. This move comes amidst increased scrutiny of ABA therapy costs and practices, with a March state forecast projecting annual spending to ex...