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Gov. Brown Approves Insurance Coverage for Therapy for Autistic Children

Gov. Jerry Brown approved legislation requiring the state’s health insurance companies to cover behavior therapy for children with autism and autism spectrum disorder. Senate President pro Tempore Darrell Steinberg, author of SB 946, hailed its passage as a “critical victory for thousands of California children and families….For many of them having this therapy covered by insurance is the difference between despair and hope,” he said in a statement. The California Association of Health Insurance Plans expressed disappointment with the decision. The industry association released a study earlier this month saying that the measure, which would cover applied behavior analysis (ABA), would cost the state’s insurance industry $850 million. ABA is considered a critical and effective intervention but can cost upwards of $40,000 per child per year. The health insurance association said the new law sets a precedent for the coverage of non-medical services and would mean higher premiums. “At a time when families and businesses struggle to afford health coverage, SB 946 is going to drive up health care costs for families and businesses by nearly $850 million a year by transferring responsibility for educational services to health insurers,” said Patrick Johnston, president of the association. “Shifting that non-medical cost burden onto private insurers won’t make the cost go away, it will simply make insurance harder to get and less affordable and accessible for millions of Californians.” Advocates of the law dismissed the insurance industry’s numbers and have said that the new law would cost only $99 million, or 40 to 80 cents per member per month. They point to a study by the California Health Benefits Review Board citing $140 million a year in special education and social service costs. California became the 28th state in the country to pass the law requiring health insurance coverage for the therapy. Judy Temes

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