Arizona Families File Class-Action Lawsuit Against AHCCCS

Providers for autism therapy services lose state Medicaid contracts

Published on Feb. 14, 2026

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A group of Arizona families have filed a class-action lawsuit against the state's Medicaid system, AHCCCS, after two of the largest providers of applied behavior analysis (ABA) therapy lost their contracts to provide services to Medicaid recipients.

Why it matters

ABA therapy is a critical treatment for children with autism, and the loss of these major providers could leave many families without access to this essential service. The lawsuit aims to ensure continued coverage and access to ABA therapy for Medicaid enrollees in Arizona.

The details

The lawsuit alleges that AHCCCS, Arizona's Medicaid agency, failed to provide adequate notice and transition planning for families when it terminated contracts with two of the state's largest ABA therapy providers. This has left many children without access to the specialized care they need.

  • The class-action lawsuit was filed on February 13, 2026.

The players

AHCCCS

The Arizona Health Care Cost Containment System, the state's Medicaid agency.

Arizona Families

A group of Arizona families who rely on Medicaid-funded ABA therapy services for their children with autism.

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What they’re saying

“We cannot allow the state to abruptly terminate critical services for our most vulnerable children. These families deserve continuity of care and a smooth transition if providers are changed.”

— Jane Doe, Parent and plaintiff in the lawsuit

What’s next

The court will hear arguments in the class-action lawsuit in the coming weeks to determine if an injunction should be issued to restore ABA therapy coverage for Medicaid recipients in Arizona.

The takeaway

This lawsuit highlights the importance of ensuring Medicaid enrollees, especially those with complex medical needs, have uninterrupted access to essential healthcare services. The outcome could set a precedent for how states manage changes to Medicaid provider networks.