Florida projects behavioral therapy Medicaid spending to drop by nearly $1 billion

The short version

• Florida officials reported that projected annual Medicaid spending on Applied Behavior Analysis therapy dropped from $3.86 billion to $2.88 billion for fiscal year 2026-27.[Fox News]
• State investigators terminated over 220 providers and referred more than 150 cases to the attorney general after uncovering abuses such as billing more than 24 hours in a single day.[Fox News]
• The Agency for Health Care Administration restricted payments for over 260 providers and introduced new screening measures, including enrollment freezes for high-risk categories.[Fox News]
• The total financial effect remains an estimate dependent on sustained utilization management, managed care oversight, and fraud enforcement.[Fox News]

Key facts

• Projected Medicaid spending on Applied Behavior Analysis therapy in Florida fell from $3.86 billion to $2.88 billion for fiscal year 2026-27.[Fox News]
• Agency investigators uncovered providers billing for more than 24 hours of services within a single day.[Fox News]
• More than 220 Medicaid providers were terminated, and over 150 suspected fraud cases were referred to the state attorney general's office over the past year.[Fox News]
• The Agency for Health Care Administration issued over 1,000 adverse enrollment decisions and carried out 400 site visits since January 2026.[Fox News]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.

• DeSantis fraud crackdown drives nearly $1B spending plunge after providers billed impossible hoursFox News