Dozens of parents and caregivers packed the Arizona State Capitol on Thursday, pleading with state officials and Medicaid insurers to reverse cuts they say are pulling the rug out from under children with autism. After major applied behavior analysis providers were dropped from managed-care networks, families warned that the shakeup jeopardizes continuity of care for hundreds of kids and threatens to erase years of hard-won progress.
What families say
Parents and providers say recent cancellations by Mercy Care, Arizona Complete Health and UnitedHealthcare Community Plan have pushed Centria Autism and Action Behavior Centers out of several Medicaid networks. For many families, those names are not just providers on a list, they are the therapists their kids see several times a week.
"What does ABA mean to our families? In the autism world, it means hope, security, stability and a bright future for our kids," parent Renee Bradley told KJZZ. The state Medicaid program spent $371 million on ABA services in 2025, up from $260 million the year before, highlighting the mounting budget and access pressures, KJZZ reported.
Lawsuits try to stop network changes
Those numbers are now colliding with the courts. Two separate lawsuits are challenging the terminations. Centria and two parents sued in December, and on Feb. 6 a class action filed by 11 families asked judges to hit pause on the contract cuts while the legal fight plays out.
As reported by Arizona Capitol Times, the plaintiffs argue that the Arizona Health Care Cost Containment System, or AHCCCS, signed off on network changes without adequately guaranteeing continuity of care. Attorneys for the agency counter that even if a court ruled against AHCCCS, that would not automatically bring the canceled contracts back from the dead.
In court filings, AHCCCS has also told judges that managed-care organizations have openings for clinic-based and in-home ABA services for more than 1,000 members, a claim that is referenced directly in the lawsuits.
Insurers say network capacity exists
Mercy Care executives have not shown any sign of backing down. Representatives told the court and reporters they stand by their decision and say they are helping families transition. The plan’s network still includes more than 70 ABA providers, and members are being connected with alternatives, AZ Mirror reported.
AHCCCS says it is monitoring how those transitions are going and has pointed in court declarations to what it calls limited but measurable movement of clients to other providers. Parents on the ground tell a different story, saying that long waitlists, long drives and disruptions to carefully built routines make switching providers far from a simple paperwork change.
Parents highlight real-world fallout
At the Capitol, parents lined up to describe what those disruptions look like in real life. Some said the network shakeup has already forced them into short-term extensions or out-of-pocket stopgap arrangements to keep therapy going. Others said they live with a constant fear that their children could slide back to pre-therapy functioning.
Nearly 100 parents, providers and advocates turned out to urge AHCCCS and insurers to restore contracts or at least come up with alternatives that actually work for families, Axios Phoenix reported. Advocates say the Arizona dispute is a high-profile example of broader workforce shortages and reimbursement challenges in ABA across the country, not just a one-state flare-up.
Legal implications and next steps
The lawsuits ask judges for temporary orders that would block the terminations while the underlying claims are litigated. That kind of ruling could buy families time to find stable care or effectively force insurers to keep existing provider relationships on life support a little longer.
As detailed by Arizona Capitol Times, AHCCCS has pushed back, saying it does not have unilateral power to reinstate private contracts and that its role is oversight, not contract resurrection. Judges’ decisions in the coming weeks will determine whether coverage is paused, insurers must redo their transition plans, or families are left looking to lawmakers and additional legal challenges for relief.
